Real Estate Investing Guide: Bad Locations Good Returns

Even in the slowest of markets you can still make money in real estate wholesaling. Even in "Bad locations" you can still make money wholesaling real estate. Here are a few of the deals that I have done in Bad locations:

A few of My "Bad Location Homes" have been like this:

paid 26k, repairs 5k, rented $675, sold for $62k
paid 38k, repairs 5k, rented $1000 (2 unit) sold for $62k
paid 33k, repairs 5k, rented $675, sold for $62k
paid 30k, repairs 12k, rented $675, sold for $62k
paid 30k, repairs 10k, rented $675k, sold it for $62k
Total paid $157, Repairs $37k, Sold $319k Gross Profit $125k

These are all homes that anyone could have bought, but they were in the "bad areas".

Im beginning to think that "good areas" might be "bad areas" for the wallet.

Look at the cash on cash returns.

Good area= 15000/100000 =15% cash on cash return

Bad area= 20000/40000= 50% cash on cash return

Good area rents $800 on $100,000 home .08% return on Rent

Bad area $675 on a $40,000 home 1.6% return on rent

But wait, your thinking bad area bad tenants, good area good tenants, right?

Wrong. Bad tenants are bad tenants ANYWHERE, good tenants are good tenants ANYWHERE.

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