You must be logged in to reply to this topic.
-
I Found a 2/1 house in Indy and talked the owner down from 10K to $6500. It’s one of his last rentals and he wants the 15yr tenant to be able to stay there. She pays $485 a month:) Would anyone want a piece of this deal?
Kevin Stroup [email protected]
This would not be something most cashflowdepot members would want to keep in their portfolio. Jack and Peter have trained up to only “keep” median or higher priced homes.
Sounds like this would be a good one to get an option on for the $6500 then wholesale to another investor for $7500
make some quick cash and move on to find a better keeper
Yeah it’s more of a Lonnie Deal. I call it a disposable house, just for income and not appreciation. I do appreciate the income though! It’s like buying a CD that will earn you 12% for 16 months and then pays $400 a month after that. When the renter does finally move on I can still flip it, sell it on contract, lease option or rent it again. Median and higher properties are the true way to building wealth, but little Lonnie deals are great to have some income streams.
You’ll find that Lonnie Deals are labor intensive & higher maintenance than regular houses. I did a lot of Lonnie Deals, but I created the note only so I could trade them for NICE houses in NICE neighborhoods.
So, if you got this house with the sole intention of using it to trade UP, it would be ok. I would not want to keep this one in my rental portfolio.
There’s a good chance ( hopefully) that the government will cut way back on section 8 housing – that program is bankrupt. If they did that, you’d have a hard time finding a tenant who would pay anywhere close to what it is getting now.
You must be logged in to reply to this topic.
