Question Details

Joe Fleane, Home Buyer in San Francisco, CA

Where can I buy a rental property for $70,000?

Asked by Joe Fleane, San Francisco, CA Sat Feb 21, 2009

Let's say I have some cash and I'd like to buy a house and rent it out and never sell it. Is there a city that meets the following conditions?

- Houses sell for $70,000 or less.
- People are willing to rent houses.
- They don't have hurricanes, tornadoes, earthquakes, or floods.

Maybe $70,000 is too low. What if I said $150,000 and got a loan of $80,000? Would that help?

What if I were willing to accept one type of natural disaster. For example, tornadoes, but still not hurricanes, earthquakes, or floods.

Help the community by answering this question:


Ebdb, Investing requires research, research, and did I mention research.

First to get a general idea of rental markets trends and rent comparable you might wish to give these sites a look. ...........................
You might want to begin looking at the Bank and Gov. properties for sale sites. Like these.....
They will allow you to see asking prices, addresses, who the property is listed with, anywhere in the USA for Free as they are provided for the public by the Banks and Gov. These sites all with provide you links to the Bank and Gov sites.......
These sites will also provide you with a lot of information on the purchasing and bidding processes involved.
When you feel ready to choose an agent you may want to read the information here...…

Lastly, I'd like to say that I would suggest spending days (seriously) reading thru the Q&A as the amount of information in this forum will provide you with much knowledge about investing/buying/selling/renting ect..
Like this for example.......

Good luck in your investing, Dunes
1 vote Thank Flag Link Sat Feb 21, 2009
Ebdb, I hope some of the links help, best of luck with your investing.................
0 votes Thank Flag Link Sat Feb 21, 2009
Dave, thanks for the advice. I'll definitely keep college towns in mind. Athens, GA sounds promising. Or maybe Austin, TX.
0 votes Thank Flag Link Sat Feb 21, 2009
Dunes, thanks for the links. I've bookmarked most of them. Those rental price databases are awesome. The research begins...
0 votes Thank Flag Link Sat Feb 21, 2009
There are condominiums in OCean City, NJ for $70,000 and less.
email me at if you want more information
0 votes Thank Flag Link Sat Feb 21, 2009
Spock, Perhaps the FEMA site which has natural disaster maps, statistics, disaster risks for where you live ect, might help you determine where you want to invest......
or a natural disaster forum....

Good luck, Dunes
0 votes Thank Flag Link Sat Feb 21, 2009
Bill -- the choice of tornadoes was more of an example to frame the question rather than a statement of an actual preference. However, you make an excellent point. You do get some warning with a hurricane. However, since this would be investment property, I'm not sure what I could do about it if I found out there was about to be a hurricane 600 miles away from where I live.

You do open up a very interesting question: if you had to pick one type of natural disaster, which is the most financially manageable?

Now that you mention it, I wonder if that wouldn't be tornadoes? Here is my reasoning: all other types of disasters potentially destroy a much larger number of properties in the same place at the same time. Therefore they are harder and more expensive to insure against, and claims are less likely to be paid. In the case of a hurricane, earthquake, or flood it might make more financial sense for the insurance company to go out of business.

With tornadoes on the other hand, it's just a few houses at a time here and there. That's the type of situation an insurance company can handle reasonably well and they will have some incentive to pay claims because they want to keep selling tornado insurance.

Any thoughts?
0 votes Thank Flag Link Sat Feb 21, 2009
I agree with Lynn. The cities around Dallas are good.. just go North! :)

Tons of companies are still relocating here due to cost of doing business being less expensive. I personally would stay out of Dallas County... but thats just opinion. But taxes aren't too bad, insurance isn't sky high, and there are tons of great schools all around.
0 votes Thank Flag Link Sat Feb 21, 2009
Still no hurricanes..........

I guess you like suprises. Hurricanes are one of the few natural disasters that people know about in advance. Just wonder why you are willing to accept total destruction from acts that are totally unannounced.

Have you really thought about this?????
0 votes Thank Flag Link Sat Feb 21, 2009
You should look at really cool college towns. How about Athens, GA or Eugene, OR..... There are hundreds to choose from.
0 votes Thank Flag Link Sat Feb 21, 2009

Lots of parts of Metro Detroit have homes that will sell for less than 70k and provide you with positive cash flow. We don't have any of the natural disasters you mention.

Web Reference:
0 votes Thank Flag Link Sat Feb 21, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
Have you ever given thought to acquiring a house from a motivated seller where you didn't have to put very much money down or you just took over their payments.....then turned around and Lease-to-Owned the house to a qualified tenant/buyer for a period of 2-5 years (getting money upfront + monthly cashflow + money at closing)? Or worst case scenerio....use it as a straight rental for strictly cashflow?

Why put money into a deal when you don't have to? If you can learn to invest with little to no money, you can limit your risk. I guess it all depends on the return you're looking for on your investment and the time period you want to have your money back in your pocket. Many of the people I know get 15% to infinite% ROI.
Web Reference:
0 votes Thank Flag Link Sat Feb 21, 2009
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