Us Property

10K? I would be looking into why this property is so cheap. You mention it CAN be rented out for $600 per month. Does this mean it currently doesn't have tenants? It's very possible it is located in a slum, making it near impossible to rent out.

I would be very careful if I was you. You have heard the saying if it looks to go to be true it probably is

I have been involved in America since 2005 and I would be amazed if these properties were ok. The very least you should do is go there and see it for yourself otherwise you are wasting your money.

Hi priscillac22

You mentioned that you haven't yet completed your DD.  With all the stories I've seen on this forum regarding problems with buying in the wrong place in the US, I'd strongly suggest you give Nigel a call.

Cheers,  Paul

I currently have 5 properties in the US and would like to buy another 30 in March.

Deals like this seem too good to be true. I must admit I've been very tempted. My advice is to get the property address and google it. There is a leading us web site which gives crime stats and rates local schools.

Also consider how old the property is. It's likely to be very old stock and the chance of large maintenance bills is higher. Also these types of properties usually expect higher vacancy rates and problems with tenants paying.

If you've got 10-15k, I would buy a turn key property in a better location using other people's money to leverage. There are more than half a dozen companies who offer this service for a fee.

A lesson I've learned is to make sure the property is tenanted before closing.

Good luck.

John

Not that I’m interested in purchasing property in USA, bit when people talk about slum areas how bad are we talking? Is it just bums hanging around the streets or are we talking gangs and thugs?

See the movie 'end of watch'

Let me put it this way you will not have seen anything like it in Australia. These are areas you would drive through with your windows up. Thats why I encourage people to travel to the US and inspect the areas for themselves. A lot of people have lost money in America the problem is that most of them do not know it yet.

Their are great opportunities in the States but you have to be careful

Just watch were the smart US money is going  and we hope the billion dollar hedge fund guys are smart but they are buying in AZ FLA GA  CA vegas to some extent.. little bit in Indy…. where they are not buying is MI OH.. or Rochester NY… this is where Nigel and I firmly agree….to buy 1 10k house in the US and hope it works well is 50/50 at best,,, If your set on buying that cheap of houses then look north of Indy… Kokomo is a nice little town no crime you can find 10 to 20k houses that will rent OK. I just bought a duplex there for 5k put 15k into it rents are 525 a door… but it took 6 months before I got my first tenant i could sell it for 30ish if I wanted to flip it to  a Califonia cash flow investor. …………………………………………………Jay Hinrichs…………………………….

Yes, heaps of problems. Especially with unresponsive scripts. Somersoft is a professionally run forum without these sorts of problems

Rochester,  snow ICE big old houses that are money pits.. No capital growth whatever  constriction of population.  there are many areas of the US where housing will never rebound.. If you want to come here and start a rental business and own a lot of homes and make a business out of it then these towns work.. but for a passive investor looking for turn key and an exit in 3 to 5 years one should be focused on other areas…