We currently live in Melbourne, but will be moving to Canada soon for a couple of years. We have always been interested in property investing and have kept an eye on the USA market for the last couple of years. Now that we are going to be fairly close to the States we have been researching the option of purchasing property there more seriously. The fact that their prices have fallen through the floor, is great news for us.
Just today, I went to Realtor.com, picked a place (Arizona) at random and put in my criteria ($15-$30K). There were hundreds of listings to look at. Yes, many of these places are going to be in locations which many of us would not consider living in, but at the end of the day, a tenant is a tenant. Not everyone needs a fancy house to live in. What was really scary was the sales history of many of these places – houses that sold for $180K in 2006 were now going for $21K!!! Many had been listed on the site for more than 150 days.
For us, our main criteria when purchasing is that there must be a tenant already installed. There were a couple of listings where the tenants were paying approx $600 per month on a house thats for sale at $20K. Those are pretty good odds in my book and those are exactly the kinds of properties we will pursue. We plan on holding on to the properties for many years anyway.
At this stage, we are looking for properties under $30K and to some extent, we are just going to jump in and have a go. We have some free capital, so we plan on paying cash for anything that we buy.
Hi BevK,
I have started a business called invest USA, we are in the process of setting up a website which should be online in a week or so.
We do currently have properites that are for sale that have tenants in them already, getting ROI over 16% nett. Prices starting from 31K
When you look online at certain properties that seem to good to be true you need to be sure of were exactly these properties are what suburbs.
I have been involved in property investing here in Sydney for many years, I have recently purchased a property in the NY state area which is currently undergoing rehab, when it is finished and tenanted it will return me over 25% net.
My business partner has a background in finance and is a mortgage broker as well as a property investor.
I would be happy to make contact with you or you can email me at [email protected]
Regards
Jeff
Thanks Jeff for the post.
I have been doing so much researching this last week, my head is spinning.
Initially we had wanted to look at properties between 15-30K, but I think we will probably change our strategy a bit and look at a range between 30-45K approx.The only downside is that we need to change our initial financial strategy a bit, ie: if we bought 2 houses at $25K each, we would have settled in cash, but with a higher range, we may have to part finance in the beginning, which may be a bit hard to set up with the banks given that we're non-residents. Not impossible though, just an extra hurdle.
I'd be interested in browsing your website when it comes online. Please keep me updated.
Hi Bevk
What part of Canada are you travelling to? I have been investing in the US for nearly 10 years, if you would like to have a chat I would be more than happy to assist you or at least put you on a proven track. All of the properties that I buy are fully refurbished, with a new tenant in place and high rental returns. You don't settle until the tenant is in place. The property management team are all in place. My email is [email protected] I look forward to having a chat.
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