Making Money in Slow Areas? - Posted by Jonathan Morgan

Posted by Jonathan J. morgan on January 31, 2002 at 12:42:53:

Good Idea!

Making Money in Slow Areas? - Posted by Jonathan Morgan

Posted by Jonathan Morgan on January 31, 2002 at 04:33:36:

Hello Everyone,

I live in the Dayton, Oh. The Dayton market has very little appreciation on properties (1-2 1/2% per year) for the long term investor. I was wondering if others could suggest strategies for areas that have little appreciation. I have been studying lease options, but I am uncertian if they are legal or not, especially if I am making a huge profit. I am also worried about due on sale clauses.

If other investors have good strategies for areas like mine please comment, I am all ears.

Thanks in advance,

Newbie,

Jonathan Morgan

Re: Making Money in Slow Areas? - Posted by GL(ON)

Posted by GL(ON) on January 31, 2002 at 10:17:06:

Here is the classic strategy for markets like you describe.

Buy run down multi family properies for a fraction of their potential worth. Get owner financing, nothing down, whatever suits you. You can write your own ticket on these properties in a slow market, if the seller is motivated.

Then fix up, raise rent, and enjoy the positive cash flow. Half a dozen of these and you can quit your job.

If the market suddenly wakes up and gets hot, hold on for a couple of years and sell when they are selling for more than they are worth, possibly 5 or 10 times what you paid.

Otherwise you have to hold on for the long haul. If you want to sell you can, and make a good profit, but you will have to take back some financing and it may take a year to find a good buyer.

Re: Making Money in Slow Areas? - Posted by jim

Posted by jim on January 31, 2002 at 10:07:13:

Network with other investors to find out what they are doing for ideas. Buy and hold for the long term is the strategy that will work as long as there is a need for rentals in your area.