A good example of what 50K gets you in PHX. (Phoenix: sales, renters)

[ReadyFreddy]

True. It's photo 22 that shows a back window with bars on it. But you can't extrapolate "bars on a window" = meth central. All types of neighborhoods could have a home with one or more barred windows. It's more common in lower income neighborhoods but it's by no means any real indicator on its own. Sometimes the meth house is the $700k one behind a gate.

[khuntrevor]

It appears that house is sold. I wonder if they had to wait 15 days to sell to an investor. Here is another good one: http://www.realtor.com/realestateand...1_M24001-01062

latest on the Light Rail is late 2015.

[S. Chris Webb]

khuntrevor: " Here is another good one: http://www.realtor.com/realestateand...1_M24001-01062 "

This is a HUD home with several issues:

"Replace floor covering in two bedrooms where bare concrete is exposed, Repair ceiling drywall damage in hall bathroom where plumbing fixtures are exposed, Repair plumbing system, Treat and paint all defective areas."

Not sure what "Repair plumbing system" entails, or what caused the ceiling drywall damage - never sure of the extent of the damage/mold issues until you start tearing up the walls. This home is across from an office park that appears to have construction going on, and there are high power lines directly behind the house. It is much closer to a major freeway than most people would like.

Other than that, seems like a real peach.

[khuntrevor]

sold for 193,000 in 3-2007. Would rent for close to 1000. Those office parks are pretty nice over there. There is an good hotel between the house and the freeway. The three percenters won't qualify, that's why it is so cheap.

[azdr0710]

Originally Posted by khuntrevor

It appears that house is sold. I wonder if they had to wait 15 days to sell to an investor. Here is another good one: http://www.realtor.com/realestateand...1_M24001-01062

latest on the Light Rail is late 2015.

as S Chris says, those high-voltage power lines, or some kind of huge utility pole or electric line, are visible in almost every exterior picture!!....

but having that grassy area and office park across the street is not unpleasant and the tile (?) looks nice....

[khuntrevor]

that's not even considered high voltage....it's called above ground electric.

[PoppySead]

IDK, I've rented and in my experience the low end rentals might get tenants but you don't get your rent half the time. You rarely get many with good credit going into it, but you have to have someone in there so you let down your guard. Then you have to go through the booting out process after several months of no pay, they leave it trashed, it's costly and a pain in the rear end.

Better return on a home in an area that cost a little more upfront but pays off with good tenants for years to come, IMO.

Unless you're flipping it, I'd forget anything under $150. But, that's just my two cents. It's only worth two cents. lol

[khuntrevor]

a little more? you stated 3 times more. It is very unlikely that a 150K house will flow. Most property managers I know actually do credit checks......

[PoppySead]

Originally Posted by khuntrevor

a little more? you stated 3 times more. It is very unlikely that a 150K house will flow. Most property managers I know actually do credit checks......

Well, you have to look at the target audience. Do some research on who is most likely to pay their rent, and not run out after months of no pay. Good luck finding a person with good credit that wants to rent a 50,000 dollar home and wants neighbors like that. You might find one, in a thousand.

If you can't afford to be a good landlord maybe you should just put it on the back burner. It takes money to make money. IMO.
A lot of people try and make a business out of nothing, but you have to be realistic. Not meaning to offend, I'm sure you know what I mean.

[Zippyman]

Originally Posted by PoppySead

Well, you have to look at the target audience. Do some research on who is most likely to pay their rent, and not run out after months of no pay. Good luck finding a person with good credit that wants to rent a 50,000 dollar home and wants neighbors like that. You might find one, in a thousand.

If you can't afford to be a good landlord maybe you should just put it on the back burner. It takes money to make money. IMO.
A lot of people try and make a business out of nothing, but you have to be realistic. Not meaning to offend, I'm sure you know what I mean.

Actually some of the most profitable rentals are low-end, and the rent price doesn't necessarily mean the tenants are inherently bad. In a property management class I took a while back the 40-year veteran property manager who taught the class claimed the worst tenants were lawyers. In fact, it was one of his written "exclusions" he provided to all tenants under the fair housing laws. " no lawyers, no felons, no aggressive dogs, no waterbeds, etc"...

That said, these places are too much work & too much cash out-of-pocket for small investors. Financing anything under $50k is a problem, and if you add in even $10k in necessary repairs, you've got $60k cash hanging on one tired unit. With good credit, you could probably do at least 2 and possibly 3 more expensive properties using financing & net a much more reliable income stream & better "cash on cash" return.