Buying $3 MILLION In Cheap Houses?

"I'm looking for affordable housing so just uh so this is 12 16 units at 1.2 million so you're talking about what's that 75k unit so you're way below average with a value add and then you can refi which just means up the value the bank will say it's worth more money and you can get all your money out so you're getting really affordable housing at good rents and then you're basically doing a burr but at a commercial level so you're getting a free 16-unit apartment complex that's probably not going to drop in rent rate or in value because it's already cheap."

"I always want to be on the more affordable side and you know if you purchase this place it doesn't matter what brand thinks but I'm more about going on the better quality cheaper price because you will never have a vacancy or not you don't have to max like squeeze every dollar out of the deal so should there ever be a recession or whatever you've got room to sell it you've got room to increase rents you're always going to cash flow with it and so stainless steel is in new kitchens and a floor plan like this would cost what 15 maybe less yeah it's not going to be a lot yeah 10 to 15 000 labor's still decently cheap in this area it's just going to take time to get renovated so you put 15 000 in the 75 000 unit you go from 700 bucks a month in rent to 900 to 1000 ish your tenants are still happy they're not furious at the price but the quality is so much nicer and what I've discovered the hard way is better quality units at a higher price attract much longer term tenants and the longer term your tenants are the more money you're going to make because turnovers suck."

"The current owner of this apartment complex hates the idea of doing um student housing which to me would make all the sense in the world you rent a place like this for let's say five or six hundred dollars per student right you're not at seven hundred dollars anymore you're at fifteen to sixteen hundred dollars granted you have to carry the utilities plus if it's anything like me or I would school then you just always have tenants because yeah you wanna live on campus their friends take it next they don't super care about the conditions."

"So the bedrooms are just around they're probably like eight by tens yeah 80 square foot maybe 100 square foot yeah so they're not gigantic bedrooms but the thing is you're the lower price very good neighborhood yeah I can't stress that enough because the new high school was just built right over there um you've got a lot of older retirees on this road your the two most expensive subdivisions in town are two blocks north and then half a mile north and you know the university right so you can probably get away with doing a higher rents yeah per the room quote unquote yeah."

"I figure I can ask for 50k yeah and a price reduction I always do this I don't actually care about price reductions because I'm leveraging the money okay I wonder if he would do a credit for repairs oh which is basically a price reduction right but yeah give me instead of giving me 1.1 give me 100 for repairs and then you can do six of these kitchens right off the bat and with a place like this you can kill to keep the rent slow but you can increase your cap rate enough to make it really worth your while right."

"So in a solid b neighborhood you could do pretty much whatever you want you could do section 8 you could do just nicer quality rentals you could keep it as is yeah because as is I mean you probably you probably wouldn't have to do repairs for section 8 yeah you could just fill it up with section 8. but that comes with a lot of you know downsides it can it depends on how you know how to screen tennis it doesn't the big thing that I have found out is if you can become good friends with your local caseworkers at section eight they can kind of they can't give you advice on their the the section eight tenants but they can say hey I would go talk to the neighbor on this person I had one tenant uh section eight person say hey can't tell you anything about this person but I want you go or you should do some interviews with the neighbors and we found that the guy that was had a section 8 voucher he was robbing the elderly neighbors for their pills like we said inside the rental."

"So I'm going to drive real quick through this is Sylvan Village over here okay they started building out the subdivision in 88 89 the current median price is in the high 200s low 300s the most expensive house that sold the past five years sold here for like seven fifty eight hundred and fifty thousand dollars is that your house no no."

"So um over here we've got two institutionally owned apartment complexes and they are almost identical to the one that we looked at um it's like everything everything's for sale if you talk to the right person that's why we're doing the real estate course and doing a lot of education and training online because it's like the average person I don't think knows that we could knock on these people doors or we find them on facebook it's like facebook stock these people and ask them do you have any interest in selling your house and even if your success rate's one percent and you make a hundred thousand dollars on the deal it's still worth it."

"And the deal is it's 20 25 000 ish after the fees I'm gonna pay a assignment or wholesale fee right and another house that I'm flipping we've just went under contract at eighty seven thousand five hundred dollars."

"This is what like a forty thousand dollar house in Ohio looks like forty thousand I think we're doing fifteen hundred dollars in concessions and title fees and closing costs."

"So with that house we could flip it we could rent it out for probably 850 a month have 35 thousand dollars in it if you want to do that deal."

"Here's an empty lot we could get it for five or six thousand dollars we could bring in a stick built modular type home a hundred thousand dollars and build a property there and get thousand dollars a month off of it."

"The whole entire street can be purchased I really like this neighborhood because the prices are really low when they built the bypass here they devalued practically everything."

"And as a part of that he wants three million dollars for the package and for the most part no one's really willing to offer him three million dollars for the package they feel that they're it's under value but from my standpoint you buy it for three you put 1.5 in it you've got 4.5 total in it the whole package is worth seven seven and a half million."

"The demand in this area is for easily hundred of those wow so rooming rooming houses are super high demand but no one wants to do it because of the logistics cost of it sure having somebody come in and manage it."

"I've got a bank that I think would give it to us for a million down including the rehab okay and so if he could basically hold that million for us we could give him two million immediately and then when we refi we could even give I think he could do that because I've asked him about that he said I don't understand it at all and I said so you're not willing to you know delay a little bit of the payment while somebody else comes in and fixes it up and he's like I don't have any interest in that."