Posted by SCook85 on February 06, 2001 at 22:32:17:
You need to find the home that can be bought for $60-70k in the $130k areas. Buy homes at a discount, and rent for above market rent. I know in my area that if a home retails for $130k, I’m getting much more then $900 a month for it. Hard for me to believe that one would rent for less then $1200.
Steve
Selecting an Area to Invest - Posted by Joey
Posted by Joey on February 06, 2001 at 21:12:47:
I’ve decided to do a buy and hold strategy. I have fliers ready and my ad all set to run in the paper. And then…I get stuck. I can’t seem to decide on the ‘area’ to invest. Yes, I know I should just target motivated sellers and ignore location BUT even the successful investors on this site I’ve found concentrate in a particular area and ONLY THEN do they target the motivated sellers. My own neighborhood has homes around $250K and through my research I’ve found they would rent for $1200 a month so that won’t work.
So I start looking into the blue collar neighborhoods. Result? More reasonable - homes selling for about $130K but upon further research, found they are only renting for $900 a month. So, I’m still not finding that area of 1% rent per purchase price to make the thing work. I really don’t want to go into the drug and high crime areas. For the rest of you ‘buy and holders’ out there - any advice??