- priscillac22Member@priscillac22Join Date: 2004Post Count: 5
Im thinking of buying a us property for 10k with looking into the real problems inside of it, I wil be getting a valuer to look at it.
At the moment the valuations come in at 16.5K and 20K. What can I do with this property to make the most out of it money
wise. It can be rented out for $600 per month. Equity and leverage?BigCubezParticipant@bigcubezJoin Date: 2012Post Count: 48
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.priscillac22Member@priscillac22Join Date: 2004Post Count: 5
No it is in toelldo Ohio, I just havent done all the due diliecence on it as Im just finished renovations on a property in Brisbane.
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.TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271Paul DobsonParticipant@pauldobsonJoin Date: 2003Post Count: 1,196
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, PaulRichard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Agree with Paul. Give Nigel a call.
Proceeding on the off chance is like driving down the Western Freeway with the window open and throwing dollar bills out the window.
Difference being when they have gone they have gone. With your property you will still be paying the Council Rates etc for many a year to come.
Yours in FinanceBig JohnParticipant@big-johnJoin Date: 2013Post Count: 13
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.
If you buy property around 10-15 thousand dollars then you are asking for trouble. But people are dumb and I am sure they will keep buying third rate properties in slum areas. The days of the bargain basement properties are gone, therefore really cheap properties spell trouble.
Personal I would buy better quality homes that you can obtain some finance on and better again apartment complexes where you will not only make cash flow but also capital growth.jmsrachelParticipant@jmsrachelJoin Date: 2012Post Count: 711
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?Big JohnParticipant@big-johnJoin Date: 2013Post Count: 13
Can be large tracts of vacant properties. Shootings. Drugs. etc.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213jmsrachelParticipant@jmsrachelJoin Date: 2012Post Count: 711
If It’s only drugs and shootings they happen everywhere.
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 carefulgabbar12690Member@gabbar12690Join Date: 2013Post Count: 1
good thought for buying property… you should buy this…
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…………………………….
Not sure if any one else has the problems I have with this site , and right now I am on the wifes computer which is brand new my computer won't even open the site up………………..Jay HinrichsTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213TWH wrote:Not sure if any one else has the problems I have with this site , and right now I am on the wifes computer which is brand new my computer won't even open the site up………………..Jay Hinrichs
Yes, heaps of problems. Especially with unresponsive scripts. Somersoft is a professionally run forum without these sorts of problemsDGHayesParticipant@dghayesJoin Date: 2009Post Count: 19
Interested to hear why yourself & Nigel think Rochester NY is not a good area to invest in?
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…