As beautiful as it may sound to have your dream home for 500, I don't think Alex can give this one to us.
Homebuying is very rewarding but there are a number of things we have to take into consideration when purchasing....
ONE OF THOSE THINGS IS THE PURCHASE PRICE.
Put it this way, the lower the purchase price, the more work you're going to be putting into that property. Granted, we do get lucky sometimes in an auction due to foreclosures, tax liens, etc. but majority of the time you'll be investing into properties and flipping them for profit.
Don't get discouraged though! This doesn't mean that you have to buy a half a million dollar home. There is a middle ground. You can find quality homes for fairly good prices. You always want to make sure that your debt to income ratio is balanced, because this is a big determining factor on how you get approved. Read more about pre approvals here.
I'd personally say homes that are 75K-100K are good starter homes that may need a bit of fixing up. There are cases where they are completely rehabbed and ready to move-in. You can find really nice detached homes that have 2-3 bedrooms at this price.
When you reach the prices points of 100K-200K, you'll typically find homes that are larger with more amenities. Things like 3-4 bedrooms and 2+ bathrooms, larger front and/or backyards; 2 car garages; multi-level homes. For me, this is the safest and most comfortable place to be. Condos are also very common in this price range, but be careful; HOA fees can be devastatingly high based on the shared amenities.
PS, I'm having an open house for this home Saturday Nov 14th... 156K ;) Click the photo for more details.
The big ballers hang out here. 200k and higher means that you can afford a mortgage that may be as high as a rent that's over 1500 a month. The luxury, the pools, the large ceiling to floor windows and marble finishes. This is where these modded out homes live and it's a beautiful place to be. These are the types of homes you see on shows like MTV Cribs. It's not impossible to get here! Let me tell you a special way you can increase your profits.
MULTI UNITS/INCOME PROPERTIES
Let's say you're wanting to make more bang for your buck with real estate, but you're not looking to flip properties. You can get financed for multi-unit properties. This allows you to live on-site (if you'd like, sometimes you're required to stay a full year) and receive income from you other unit(s). Financing can look something like this: 200k for a 2 Unit, 300K for a 4 Unit and 400k for a 6 Unit. This is literally the best way to increase your profits, live for free and make enough money to buy yourself a 7 bedroom home with 3 bathrooms, a coach house, pool and a butler!
There are a bunch of ways to be great, and one of these ways is by purchasing a property. Let's create new standards and create generational wealth!
Turning 100 Renters to Owners by Dec 2021 - Click Here to contact me for a pre-approval. See you at the finish line.