I have learned from experience CASH FLOW is much easier to achieve buying small multiple residential properties such as 2 or 3 houses on a single lot, several duplexes with a house or two, or any combination of these cluster type properties. I own many properties with 5 to 8 living units each. They are excellent cash flow producers a year or so after my fix-up. My timetable for a complete turn around is 18 to 24 months.
There are many good reasons why fixers are the perfect properties to begin a real estate investor career. However, leading the list is CASH FLOW. Fixer houses by far offer the best opportunities for small time investors, without, much cash to spend, to acquire real estate and still achieve cash flow quickly. No other kind of real estate I know of will increase cash flow so fast.
It is reasonable to expect…after paying an average of 10% down that one can create a positive cash flow property within a relatively short period of time after the purchase. Obviously, the time it takes will depend on many factors, such as how long does the fix-up take, how much market value is added to the property and most certainly, the skills and aggressiveness of the investor-fixer.
With fixer properties you’ll find less competition. Your odds for success are greatly increased. Competition is what drives up prices. Conversely, the lack of competition keeps prices down. It’s nearly impossible to purchase prime real estate at a discount – or expect to get any sort of a break on the terms. The reason: Too many buyers are willing to pay the asking price. Why would the seller need to discount?