3 of the Most Affordable Places to Buy Cheap Rental Properties

[@donaldbiden9492]

I guess they won't be affordable much longer thanks to this video

[@stevend481]

Yeah prices will skyrocket because of 3k people who watched this LoL

[@davidmeyer1101]

@@stevend481 And way fewer will actually act on it 😆

[@mroman716]

😂 you right about that 😅

[@MKpixelfan]

have you ever thought about the fact that these videos might be made to purposely gentrify or move people to certain areas? Nothing is by chance or accident. Where attention goes, there goes your $

[@donaldbiden9492]

@@MKpixelfan I certainly wouldn't discount the idea. Channels like this can easily influence a shift in price in target markets.

[@youtubecarspottersguide1]

I look at all homes for sale in the zip code, highest-lowest ,look at the schools

[@sidshri6080]

Thanks Dave, short n crisp content

[@davidmeyer1101]

Glad you enjoyed!

[@sergii_real_estate]

Fayetteville is the lamest city ever with pictures of military helicopters on the walls in Starbucks. And you compete with 3% VA loans for all of the serving people there. It made to the list just cuz none wants to live there

[@allme7425]

Excellent reasoning and analysis

[@davidmeyer1101]

Thank you!

[@chadrider9562]

Says he would not buy property that does not cash flow then choses an example property that would not cash flow.

[@davidmeyer1101]

Are you sure it wouldn't cash flow? Would love to see your analysis! Please share.

[@chadrider9562]

@@davidmeyer1101 20% down on $241K leaves mortgage of $192,800. 7% over 30 years is $1,283/month. Taxes $300/mo, insurance $100/mo, house looks in good shape so we can go low on cap ex, repairs, and vacancy (say 4% each) $210.36. That comes to $1,893.36/mo in expenses. Even without accounting for cap ex/repairs/vacancy (which would not be good underwriting) you're at $1,683/mo in expenses. Rents for $1,753. It's not my market so I largely guessed on taxes and insurance rates so tell me if I'm wrong. Love your stuff Dave and I am a big fan of the On the Market Pod but this one might have been a bad example.

[@randyh3094]

@@davidmeyer1101piti would be about $1508, if it rents for $1753 that's after 48k down payment

[@davidmeyer1101]

@@randyh3094 Good analysis here! The point of the video was definitely not to say this particular deal was good -- it was to talk about the markets and just showcase some cheaper properties. That said, I personally would analyze a dealif it has an RTP of about .7% or better right off the bat. Then I'd look and see if the rents are accurate, or if it could get towards the higher end of the range. Also would consider a rehab to see if I could boost rents. Just as an example I bought a duplex this year around .73, did a $20k rehab and now get a 8% CoCR. But you're absolutely right -- as listed it wouldn't cash flow. Probably should have been more clear about that. Appreciate the feedback.

[@PostalNerds]

8:10 F5 Tornadoes 😂

[@AmezcuaREI]

I’ve been planning a move to Oklahoma City for about a year now, and I am absolutely furious that every one of your videos keeps talking about it. I thought I found a hidden gem and now the masses are going to start flocking there lol

[@Cuete590]

Same thing that happened here in Texas now we have a bunch of damn Californians flocking here causing things to become more expensive

[@mikethomas1081]

I actually like OKC. I've been there a handful of times and it left a good impression.

[@delontamcclain4571]

As a BP pro, do we have free access to propstream ?

[@JD-vm5wl]

The West side of ND. Oil, oil, oil

[@staceyarbetter5011]

Propstream really sucks in Massachusetts

[@HunterWillis]

With today's interest rates, it is hard to cash-flow with a rent to price ration lower than 1.25%. Ideally, you'd be at 1.5%.

[@davidmeyer1101]

That's not what I'm seeing! I see breakeven in a lot of markets at around .7%, and decent cashflow closer to .9-1% personally. But then again, I don't expect a 12% COCR so maybe thats where we disagree.

[@HunterWillis]

@@davidmeyer1101 I aim for a minimum of a 5% minimum COCR. But I also assume 10% Maintenance/CapX and 10% management fee since I can't afford my local market yet. (The Springs) I avoid breakeven at this point. I agree - you can get breakeven with a lower RTPR.

[@randyh3094]

@@davidmeyer1101I would like to see how .7 makes any sense zero cash flow

[@Not_Interested93]

@@randyh3094too many variables to consider. The neighborhood, tax rates, insurance rates, down payment, rate buy down, etc, are among the many variables that can make a .7 RTP cash flow or not.

[@randyh3094]

why in the world would you buy a 240k house that rents for $1700 zero cash flow

[@davidmeyer1101]

I think it depends on your strategy. Looking at this deal just off the MLS casually doesn't tell the whole story, neither does RTP. Are you doing a rehab? Is it a nice place that can command rents towards the higher end of the area's range? The point of this video was to showcase markets with strong fundamentals, not propose this specific deal.

[@vmrosales3]

I hope your list doesn't increase competition in my market

[@greydenpiechnickrealestate6928]

Who installed this man

[@dustydawg473]

Where's David this guy is not it ....