Low Income Single Family Houses – Hidden Profits
Most people start real estate investing by buying single family houses. Whereas these can fall into any price range and a whole variety of neighborhoods, which type of houses are considered the best investments?
Today we explore why single family houses are the most preferred investment. Most people start real estate investing by buying single family houses. These can greatly vary in price and types of neighborhoods, but which one is the best?
This article explores why low income single family houses are the most popular.
Most people start by identifying the types of houses and neighborhoods they will work on. Lower income single family houses are preferred by most people.
My first deal in real estate investing was a wholesale deal in a low income neighborhood. I got a buyer the same day, and closed the deal within a week making about $12,000. Since then I have adopted most business models in all neighborhoods, and eventually I settled to lower income areas. These continue to provide many profitable deals consistently.
Remember that neighborhoods are very important in real estate investing. War zones should be a no go. You must avoid those bad neighborhoods at all costs.
Middle income to lower income neighborhoods present the most profitable deals. Properties in these neighborhoods range from $80,000 to $150,000 where I live. Of course this could be different where you live. I rarely move out of this zone. You can still invest in cheaper properties as long as the neighborhoods are good.
There are a variety of reasons why this is so
1) More properties
Most people live in the middle to lower income brackets and neighborhoods. This means there are more houses to choose from. You will get better results in your marketing when targeting these neighborhoods.
In any market, there are fewer high end and luxury houses, as well as low income houses.
Even in a bad real estate market, you are likely to more low priced houses in these neighborhoods than any other neighborhoods.
2) More affordable
You want to invest in properties you can afford. These houses are cheaper, and you are likely to afford them more easily regardless of your business model.
Of course you must be buying your houses low to make any profits when you sell.
They are also easier and cheaper to repair than bigger and more expensive houses. Meaning you can buy and sell more of them.
3) Easy to rent
There are more tenants in this price range if you rent out your houses. Most people looking to rent houses are in this price range.
This means vacancies will be lower in your properties.
4) Easier to flip
Most people buying houses are looking for the middle to lower income houses. If you are a wholesaler, it will be easier to flip these properties.
It is common to find a buyer for a wholesale property the same day you put it on the market.
As long as your price is right, you should not have a problem getting buyers for them.
The same principle applies if you buy, fix and sell. There are more regular people looking to buy these houses and live there. This means you will sell faster, have lower holding costs and make more money.
When buying and selling houses as a real estate investor, it is imperative that you maximize your profits by working smart and closing more deals spending less time, money and effort. A website for real estate investing that automates tasks and marketing helps you close more deals.
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