Where to find income property?

[CardMinger]

Is it still possible to find true "income property". Property where you will start making money or just breaking even right away?

I live in California and properties like this are extremely tough to find but I have heard that stuff like this is available in areas like Idaho and Lousiana.

Anyone have any experience like this? Is it worth it to buy out of state and find a good property manager?

Thanks,
CM

[maxtower]

There are parts of the country where you can do this. I don't know if its a good idea to manage a property from a distance, since I have been thinking about doing the same thing in South Carolina.

[Ray Zee]

if you buy out of area you need a mgt. company to do it for you. costs about ten percent of the gross.
there are lots of places where you can do real well. but remember its a long term proposition and you better be ready for that. then as prices rise, both rents and real estate you make big bucks.

[Fishhead24]

Consider Iowa farmland if you possibly can..........it will return you 4-7% annually and it is currently increasing rapidly in price(up 15-20% in the past 12 months).

If you do a search you will find many posts in which I have attempted to persuade posters to think of this outstanding oppurtunity presenting itself right now......but time is running out.

You asked if it is easy to manage if out of state and the answer is a definite YES. It is very easy to find a top shelf farmer to lease your land to.

[eastbay]

[ QUOTE ]
Is it still possible to find true "income property". Property where you will start making money or just breaking even right away?

I live in California and properties like this are extremely tough to find but I have heard that stuff like this is available in areas like Idaho and Lousiana.


[/ QUOTE ]

Uh, this is possible anywhere. Just pay cash for the property and any dime you earn on it is income.

Or did you want to ask a more specific question?

eastbay

[inishowen]

For me, I wouldn't buy anything I couldn't drive to within a half hour. Although I do own one property that's 50 minutes away, and honestly, it's a pain in the ass everytime I have to go there.

Here's a very simple plan. Concentrate your efforts in your area where the people with good jobs and good incomes like to rent. Familiarize yourself with what multis have sold for/are listed for. Know what the average one and two bedroom units rent for. Learn what the tax rate/thousand assessed is. Get an idea where the price point is per unit to break even or make a positive cash flow. Look for discrepancies in price or rent roll. Dig for the cherry property, then dig some more. Be willing to approach owners directly. Negotiate hard.

Every property is owned by someone. Some of these owners want to sell but for some reason they just haven't made the decision to put the sign out.

[spex x]

It really depends on what you mean by 'income' property. Yes, it is relatively easy to rental and commercial properties that yield 4-8% in many markets all over the country. However, 4-8% yields don't get me too excited. I ONLY buy double-digit cap rate properties, and I own properties that produce up to 24% cap rates from the day I bought them. Of course, I'm not in California.

The problem is that in almost EVERY market, double digit cap rates are exceedingly rare. If you can't make at minimum 10% cap rate, find a different investment.

As to owning property out of state: Don't do it unless you know EXACTLY what you're doing. it may sound so easy to find a good property manager, but it's not. You would NEVER hire a management company to work your properties. Their prices will kill all your profits.

If you're hot on RE, i'd suggest you move. Otherwise, focuse on flipping houses or something where you don't have to worry about rents.