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I can also say, now that I know the neighborhoods to buy in, I haven’t bought a house recently at this price point that wasn’t safe, that wasn’t a solid house, that was in a “bad” area of town, and that didn’t make a great return on investment.
Understand: it’s $30k… Not $300k or $3m Guess what, I don’t put granite in my $30k rental houses!
I can’t buy a house with a bad roof and a broken basement in this price range; it doesn’t make finance sense.
Know that Paying $30k Doesn’t Mean You Should Buy in Bad Areas My properties are in areas where I have driven, chatted up neighbors, walked, and spent a lot of time doing the “homework.” Understand the demographic who lives in the surrounding blocks of the subject house you are interested in and what the ebb and flow of the neighborhood is.
Sometimes it’s simple: it’s families in the neighborhood, and they don’t make a lot of money.
It’s a great house, and we have done “x,y, and z” to make sure that all the systems in the house are working.
Make sure you are in the property a few times a year, and make sure you are communicating with the tenants about what is going on.
Explain to them it is not a bad thing for them to call you; you want to know if there is an issue.
Maybe the bank doesn’t want to fund the deal until the property is fixed and rented.