Cash flow is much easier to achieve when buying small multiple properties, such as 3, 4 or 5 houses on a single lot, or several duplexes with a house or two. I call these “Colony properties”. I own many properties with five to eight living units each. They become excellent cash flow producers after a year or two. My goal to accomplish a total fix up job is 18 to 24 months.
With rundown properties, it’s not uncommon to pay ten percent down and still be able to create a positive cash flow property within a relatively short time. The time it takes will depend on a number of factors, such as, how long the fix-up job will take, how much tenant movement there will be, and the big variable…the skills and aggressiveness of the person doing the job.
Fewer potential buyers, interested in the property you want. increases your odds for striking a bargain with the seller. When many buyers are willing to write offers, your chances of buying at a discounted price just flew out the window. Sellers have no reason to offer discounts when flocks of buyers are lined up on their doorstep.
There is no shortage of fix-up opportunities. In fact, more houses are becoming fix-up candidates than are being fixed. The U.S. Department of Housing and Urban Development (HUD) estimates that 500,000 units of residential housing are falling below minimum habitability standards annually.
JUST RELEASED: After teaching my LIVE 3-Day REAL ESTATE INVESTOR TRAINING SEMINAR for 27 years, I just converted it to an online home study course with a BONUS……..
All 3 days of the LIVE seminar audio are included in 18 easy to follow chapters, 564 digital pages (all downloadable to view as a physical copy or create a course binder).
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Now, no cost of the LIVE seminar: Seminar fee, air travel, hotels, meals, rental cars ($2000 -$3000).
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This NEW ONLINE COURSE, REAL ESTATE INVESTOR TRAINING is a road map for financing and fixing these properties.