Quote: (12-13-2012 02:47 AM)OGNorCal707 Wrote:
So here's a question, what are home prices going for in *good* neighborhoods (no gangs, home invasions, burglary, prostitution, corner drug dealers)? It doesn't have to be a rich neighborhood full of country club style white people, just a safe middle class neighborhood with low crime rate.
Also, what are rents per month typically in these good, safe neighborhoods? Could a guy make a killing by buying a $40,000 house and renting it out per month, or would it be a huge risk, and have the potential for having the house burglarized, vandalized, or psycho tenants who won't pay rent, and try to get violent?
NorCal - you can get a good home (2,500 sq ft, 4 bedrooms, safe, 1/4 acre) for about $200-$300k, depending on suburb. I own 6 rentals and I charge about $850-$1,100 for a 2-3 bedroom, 1,100 sq ft single family home. And to answer your question, yes you can. I bought a home in Ferndale (suburb neighboring Detroit) for $40k and I rent it out for $900 per month. I am making a solid 15% cap rate on that one.