OK, now I'll look at the Zip codes looking for Multies that could be worth looking into. No way a SFH is going to give you a decent short term return. You want cash in pocket. What I am thinking here is if you want to cash out of where you are (Remember, you could keep the current building, and just take out equity for a couple of down payments on other buildings!!!) Anyway, if you want to cash out, one of the better ways to go is to take your windfall, and buy 4 houses, or some number of more properties to make more cash flow in volume.
64501
Once again, don't know your area, but this zip code is my kind of properties. Historic Downtown, priced well. Very similar to my market and downtown Columbus OH.
This one is screaming out to me for two reasons: one, it is a smoking hot deal, and two, it's almost too good of a deal for the other properties I can find.
1017-19 Sylvanie
Still right on 10th street downtown, but further south than a number of other things. Not huge south, but about 6-7 blocks. 4-plex with 2 ones, and 2 twos. At 46K for a brick 4-plex, this seems like a smoking deal, and it might be. What I would watch for is the heating. It states Gas heat. I wouldn't think it has 4 furnaces, so it is most likely Owner pays Heat, and most likely Electric and water. Paying for Tenants utilities is one of the very worst things you can do. ALL of your profits can be gone before you know it. Trust me, I made this mistake a few times. The worst one ever was when I bought a place that made lots of money on paper. End of the day, My best month in the first year was when we only lost $34.00 on the month. Oh, and the Inherited Tenants were seriously psycho. Some of the worst tenants we ever had, ever. Nothing is better than paying $34.00 out of your pocket on the BEST month for the privilege of having psycho tenants.
Let me know about the area right here, this intrigues me like there is no tomorrow.
1613-15 Francis
I don't know how 1-bedrooms go in your area. I have found that in my market, one and two bedroom units are about the only way to go RIGHT downtown like this is. 5 one bedrooms for $65K might be huge, it might be a complete bust. This is interesting enough for you to look into though.
My Detailed MLS seems to be down, so I am having a hard time pulling rents and such. You will need to do some research.
There are other things in this Zip, but those two stand out above the rest. Obviously what you would look to do here is buy 3-5 properties with your windfall for a greater cash flow, OR.....
Take your $100K or whatever it is, buy one of these out right with no Mortgage of any kind. Now, lets just run some numbers, who knows if these numbers are right, but it's a place to think from:
Let's say those one bedrooms rent for say $425.00 a month (Remember, I think you pay Utilities, so taking the one bedroom rents from Summit Place Apt, and working up from there to cover Utilities, just guessing). My Market seems similar, and we get $375 for a one bedroom where the tenant pays electric and electric heat, $425-475 if the LL pays all. So, $425.00
Five units, assume one unit open every month (Lower than the 5%, but lets be
SUPER safe) So 4 units by 425.00 is $1700.00 a month. Less taxes, insurance, maintenance, utilities on a annual basis (Higher in winter where you might make next to nothing, Low in the summer) and you could clear $1,200.00 or so a month straight into your pocket and never have a Mortgage.
(Really more like $1,500.00 a month into your pocket, but remember we are figuring a 20% vacancy rate to be SUPER safe)
Might be a way to go? Certainly something to think about. Put that say $1,200.00 aside for 5 months, build up a $5K safety net. The next 5 months goes to a down payment on the next one.
Honestly, you could do that with either of these properties, and KEEP the property you have now. Take out some Equity as long as the current place will still cash flow.
It's a market just like this one that I was able to build up some 80 Units in. It would be easy to accomplish in this kind of market.
Or the area might be a Cracked out drug war zone? If so, run.