Everyone loves a good deal, and real estate investors are no exception.
People often assume that buying a home for investment is always expensive. But did you know it is possible to purchase homes under 50k?
Insanely affordable real estate can be harder to come by, but it’s not impossible. Knowing where to look, what to look for, and understanding the real estate investment tools you need makes all the difference. In this article, we are going to cover how to find homes under 50k for sale, so you can jump into owning lucrative investment properties with less cash down.
Look at Foreclosures
Finding cheap investment property for sale can mean sifting through endless properties that are listed below market value for concerning reasons. A severely damaged property might not be worth your time. Though you can easily get these homes for under 50k, you might end up spending more on repairs.
However, damage is not the only reason why investment properties can be listed for cheap. If the home is bank-owned (REO), it could be in perfectly good shape but sell for well below its market value.
Why? Because banks don’t want to hold properties. Holding a property costs them money, which means they want to sell foreclosed homes as quickly as possible. This is great for real estate investors who want to buy a home for under 50k, as some bank-owned homes sell for below this mark.
Related: How to Buy a Foreclosure with No Money Down – Quick Guide
Search for Distressed Property
Another great strategy for finding cheap houses for sale is to search for distressed homes. This is where you might find some homes that are damaged beyond repair. But if you are willing to dig, do your homework, and get inspections done, you can find a diamond in the rough.
Properties will often look like they are in much worse condition than they truly are. If there is no serious structural damage, chances are you can turn a profit with some elbow grease. This can be an exciting and lucrative way to find homes under 50k. You will get a great deal on a property that will yield a high return on investment once you improve its condition.
Try a Property Finder
Hands down, the best way to search for homes under 50k is by utilizing real estate investment tools. By choosing to arm yourself with real estate investment software, you can automate most of the process of searching for homes and real estate data.
A helpful piece of real estate investment software to try when searching for homes under 50k is a rental property finder. In general, this is a search tool that will pull specific investment properties for sale from a database that meet your search criteria.
Mashvisor’s property finder utilizes predictive analytics and machine learning algorithms to automatically deliver investment properties that:
- best match the criteria you set forth, and
- show the highest promise of profitability.
Our property finder uses listings from the MLS and other credible sources, and you can search specifically by:
- location,
- miles,
- budget, and
- other filters.
When searching for homes under 50k, you can set the budget to reflect this. The tool will allow you to browse through only cheap investment property for sale that will perform well in terms of cash on cash return and rental income, cutting out anything expensive you don’t want to look at.
Sign up for a 7-day free trial with Mashvisor now and get access to all of the real estate investment tools and data you need.
Related: Finding an Investment Property: Traditional vs. Mashvisor
Take Advantage of the Mashvisor Property Marketplace
By far the best and easiest way to score homes under 50k for investment is the Mashvisor Property Marketplace. With this tool, you can search for off market properties. The advantage of this is that you are cutting down on the competition, as many real estate investors won’t even know about these properties.
The Advantage of Searching for Off Market Properties
Finding homes under 50k is much easier when you start looking off the market. This is a great place to find amazing deals on affordable real estate.
Aside from easily locating homes for sale under 50k, there are several other benefits to using the Property Marketplace. When looking at off market properties versus regular listings, there is a dramatic decrease in the competition for those homes. This benefits you by:
- reducing the need to make a highly competitive offer, and
- extending the length of time cheap properties are available, giving you more time to make a decision.
How to Use The Property Marketplace
Using the Property Marketplace is easy. To find homes under 50k, use these two search filters:
- location, and
- price.
This will create a search results page full of cheap homes under 50k for you to begin analyzing for profitability.
But before you start worrying about rental comps, calculations, and real estate investment analysis spreadsheets, you should know that our tool does it all for you. You can automatically conduct rental property analysis on any property in the Marketplace by clicking on the listing and visiting the investment property calculator. This tool also works as an Airbnb calculator for short-term rentals.
How to Find Homes Under 50k: A Few Tips for Real Estate Investors
You’re now aware of 4 great ways to find the affordable real estate investments you’re looking for. But before we leave you to start your investment property search, we wanted to offer you a few more tips.
Where to Look for Homes Under 50k
In order to start searching for homes under 50k, you’ll need to start with a broad location. You can start by looking at a list of the best states to buy a rental property in. For instance, in 2020, Colorado, Florida, and California are some of the most profitable states in which to buy a rental property. But what you want to focus on is states where a rental property is profitable and affordable.
If you haven’t already found the perfect place to invest, you can start your search with our list of the most affordable states to buy rental property in 2020:
- Iowa
- West Virginia
- North Dakota
- Ohio
- Indiana
- Mississippi
- Kentucky
- Arkansas
- Missouri
- Nebraska
Use a Real Estate Heat Map for Neighborhood Analysis
Finding homes under 50k is great, but it won’t do you any good if it doesn’t have the potential to turn a profit. One important factor that affects profitability is the neighborhood. You don’t want to buy cheap property in a bad neighborhood.
A real estate heat map is typically used to conduct rental market analysis and spot profitable areas to invest in. Mashvisor’s real estate heat map is perfect for this, and it can help you determine affordable neighborhoods to invest in as well.
Related: How Should You Use Mashvisor’s Heat Map Generator to Your Advantage as a Real Estate Investor?
Once you’ve chosen a city to invest in, you can use the heat map to find affordable neighborhoods with profitable investment properties for sale. You can achieve this through searching by listing price followed by cash on cash return.
On the real estate heat map, areas that show up in red are affordable. When the cash on cash return filter is selected, green areas indicate a high potential for profits. Ideally, you want to strike a balance between affordability and profitability. Make a list of areas in your city of choice that are both affordable and look promising.
Next, use the property finder or property marketplace to search for homes under 50k in these neighborhoods. If you can find homes for sale under 50k in these areas, you’ve got yourself a winner.
Not only does Mashvisor find you homes under 50k, but we find you the very best ones.
Already convinced and ready to give us a shot? Start out your 7-day free trial with Mashvisor now.
You Might Also Enjoy Reading: How to Invest 1000 Dollars in Real Estate