The popular belief is that you cannot make money on $30,000 properties, but I need you to completely throw that perception out the window and listen to me very clearly. Guys, I’ve been doing this for the last five years. I have been investing in $20,000 and $30,000 houses, I’ve done over 500 deals, and I’ve worked with hundreds of investors who are all doing well in these particular areas. No, we’re not talking about war zones, we’re not talking about the ghetto, we’re not talking C and D-class properties. We’re talking about solid B-class investment properties. The markets are not sexy, and they’re not flashy. They are blue-collar, working class areas. There is a level of demand there, you have infrastructure like hospitals and big employers, there is stuff happening in the area, good school districts. We’re all making money all day every day.
Unfortunately, there is a perception that any $20,000 or $30,000 house has to be a dilapidated property, a meth lab, or a vacant lot someone is trying to use to scam you. Look, that is true in some cases, but in other instances, like where I am investing, that is not accurate.
I live in the exact same areas that I invest in and that I sell in. So it’s good enough for me and my family, and it’s good enough for the people that I employ, so they are not war zones. Again, we are talking about B-class areas and blue-collar, working class people in these homes.
A few key pockets that you can research would be in Ohio, but I’m a little bit biased because I’m based here. Number two is Indiana, number three is Michigan, number four is Missouri, and number five is Kansas. The Midwest in general is where you can find $20,000 and $30,000 houses that you can put some work into and get a good return on investment or sell for a profit.
Real Estate Advise From Scott Poncetta, Top 1% Producer in Silicon Valley