House purchasing economies of scale

This one is a quick reminder for those attracted to investment properties. The right home to have for the purpose of renting out will be around the price median for a given area. Too expensive of a home, and it will be hard to get what is needed in monthly rent. The exceptions being vacation homes, and the luxury market.

The other end of the spectrum is even more problematic. A $40k house will have many cost items that are the same as a $160k house. Here is a list for example:

Appraisal: $200-$400. The house size can influence price, but not by much.

Home Inspection: $200-$500 depending on tests performed. It is similar to appraisal, but can vary a little more with house size. Most of the inspection will be a fixed cost.

Plumbing: Trip fees and simple fixes will be the same. Toilets will be the same.

Mortgages and titling fees generally disregard house size.

Cable TV, and utility service fees will be the same

Evictions will cost the same

Liability issues will be roughly the same

While this list has exceptions, its purpose is to provoke thought about the “good deals” to be had in low cost houses. Always make sure to do your own due diligence before making any kind of investment, and if unsure…consult a local professional advisor.

Blockchain and robotic automated systems

Evolution in Investment world

Carlisle Mitchell - Real Estate

Carlisle Mitchell - Insider Tips for Real Estate Investors. Expert investment & market analysis for real estate investors world-wide.

Writing in Color

Because Life is More than Black and White

Finance Gateway

Finance Plan Makes Your Future

politicsandreason

Discuss politics with civility and reason

LilyPetal

Either write something worth reading or do something worth writing

My Mom Thoughts

Thoughts and Recipes by Marie

%d bloggers like this: