Investing in real estate with a $75,000 budget may seem like a daunting task, but it’s entirely feasible. Today, we’re debunking the myth that you need six figures to enter the real estate market by showcasing three exciting deals that can be secured with $75,000 or less. These properties are real, on the market, and ready for investment right now.
To assist in this venture, seasoned investors Ashley Kehr and Henry Washington have joined the show to present compelling deals meeting the same criteria:
1. All-in cost of $75,000 or less
2. Not a house hack (no need to live in the property)
Additionally, our host Dave has brought his own deal to the table for consideration. These deals are a testament to the fact that lucrative investment opportunities exist in solid real estate markets even with a modest budget. Let’s dive into the details of these properties and explore the investment potential they hold.
Ashley’s Deal:
Ashley’s approach to this challenge was rooted in the safety of low risk and security. Her targeted Buffalo area led her to West Seneca, an emerging neighborhood with crossover potential from the neighboring upscale district. Ashley identified a two-bedroom, one-bath single-family home listed at $180,000 with a significant square footage. By adding a third bedroom and minor value upgrades, Ashley estimated a total expense of $47,000 within her $75,000 budget. With a projected rent of $1,600 per month, the property offers a promising 1% rule, solid cash flow projection, and a robust five-year appreciation outlook.
Henry’s Deal:
Henry’s journey took him to Racine, Wisconsin, a region teeming with working-class residents and promising rental demand. Focused on affordability and value-add potential, he unearthed a five-bed, three-bath duplex listed at $147,000. Quick rental math suggested a one-unit scenario meeting the 1% rule, with a potential revenue boost by converting the lower unit into a two-bedroom space. While Racine’s historical appreciation may not be the highest, ongoing infrastructure development and job market growth hint at future gains, making Henry’s pick a promising investment opportunity.
Dave’s Deal:
Dave’s data-driven strategy led him to Tulsa, Oklahoma, where he discovered a renovated four-bedroom, two-bath single-family home priced attractively at $210,000. While the property exudes modern charm and prime rental potential, Dave’s due diligence flagged high insurance costs—a common quirk in the state. Despite this, the property’s solid rental forecast, in light of an estimated $15,000 set aside for make-ready expenses, hinted at promising returns even after factoring in the insurance overhead.
At the end of the lively discussion, Ashley’s calculated and secure Buffalo pick emerged as the winning deal among the trio. This challenge not only showcased the viability of investing with a $75,000 budget but also highlighted the diverse avenues investors can explore in the real estate landscape. It’s a compelling reminder that strategic planning and market knowledge can unlock exceptional investment opportunities regardless of budget constraints. So, grab your $75,000 and venture into the world of real estate – lucrative deals are waiting to be snagged!
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