We’re constantly told that investing in real estate is a great way to make money. One problem, though: it’s a pretty expensive career to take on. When searching for high-quality properties with good investment potential, prices can easily soar into the hundreds of thousands of dollars — or often quite a bit more. This fact stops a lot of wanna-be investors in their tracks and bars them from moving forward into the field. The high cost — and high perception of risk — is just too much for many new real estate investors.
But alas, there’s always a way. All you need is a handful of real estate tools and the drive to invest. Use this guide to find houses under 100K, and start building wealth.
Learn Where to Search
Using a real estate heatmap is one of the best ways to find houses under 100K. This tool provides investors with an aerial view of any given US housing market, and the investment potential that lies within it. The heatmap color codes different neighborhoods in a city, based on a variety of different metrics relevant to real estate investors. Most pertinently in this context: property prices.
By filtering neighborhoods based on property value, you can quickly get a glance at the average cost of real estate in each region. This is a fantastic starting point to your search for houses under 100K, as you’ll now have knowledge of which affordable neighborhoods will offer cheap houses for sale.
The Heatmap Analysis Tool offered by Mashvisor has one major advantage over others: it’s built specifically for investors. This means you’ll be given every metric you’ll need to evaluate the potential success of your investment property and have a whole host of powerful tools available to make the best decision.
Related: Finding Income Properties Using a Heatmap
Use the Right Real Estate Investment Tools
When finding investment properties, it is crucial that you use the right tools. While you can find listings on a wide array of websites, using a portal specialized for real estate investors would be much more productive.
A favored tool among industry professionals is Mashvisor’s Property Finder. This investment property deal finder provides investors with a set of powerful tools that makes the process much more streamlined. If you’re searching for investment properties under 100k, this customizable search engine is exactly what you’re looking for.
Once you’ve found the right neighborhood with the aforementioned Heatmap Analysis Tool, you’ll know exactly where to look on the Property Finder. You can scan the specific city and set your budget to only include houses under 100K. And that’s it! You’ll be given a list of properties that match your exact requirements, in your preferred location, and within your budget.
This rental property finder is specifically favored because it uses advanced learning algorithms which can provide great insight into the viability of an investment. Not only will you find houses under 100K, but you’ll also be given advanced analytics such as its cash on cash return, cap rate, and return on investment. Moreover, you’ll get separate return on investment figures which show you how successful the rental property will perform as either a traditional or Airbnb rental. The more numbers you have on your side, the better your odds of succeeding as a real estate investor.
Search for Off-Market Deals
If you’ve been a real estate investor for a while, you certainly know that many good deals lay beyond plain sight. There are many affordable real estate options that won’t necessarily be listed publicly on Multiple Listing Services. There’s untold potential lurking just beyond plain sight, beyond the view of most people. But alas, the smart real estate investor knows what they’re looking for, and more importantly, where to look.
Consider using the Mashvisor Property Marketplace to find amazing deals and plenty of houses under 100k. Here you’ll find a multitude of options for investment properties that won’t ever make their way to an MLS. There will be no shortage of good real estate deals.
One example of what you’ll find is bank owned homes and foreclosed homes. These will very often be sold far below their market value, and therefore offer a high return on investment. Foreclosures are a common way to find houses under 100K, and therefore a great option to take into account.
Along the same lines, you’ll have access to listings for distressed properties. These will often sell for very low prices, and for obvious reason. But the smart investor knows to look past the current state of a property and see the potential it holds. Distressed properties can often be fixed up and resold in a buy and flip strategy, or otherwise rented out to tenants. They’re a great choice if you intend to buy low and sell high. The maintenance work you’ll have to put in can lead to a drastic increase in its market value. Houses under 100k can eventually become high income-generating assets or high market value properties which resell for a great reward.
Related: 6 Reasons You Should Look for Off-Market Real Estate Deals
Now What?
By using these tools, you’ve opened yourself up to the amazing world of houses under 100k. Once you’ve found cheap investment property for sale, it’s time to decide on your investment strategy.
Using a rental property calculator, you can find out whether your selected house will be a good investment property. To do this, you just need a handful of numbers, such as the asking price of the property and your anticipated costs. You’ll then be given clear numbers which show you how quickly you can recoup your investment and turn a profit. It’s crucial that you know whether your selected house will be a profitable rental property.
Alternatively, there are a whole host of options available to you if you decide on a different real estate investment strategy. Houses under 100k can usually be fixed up and resold for higher sums, making them a great choice for a fix and flip strategy. Or otherwise, you can choose to buy and hold your selected property, if housing market trends indicate it will increase in value within the upcoming few years. Whichever strategy you choose, though, make sure you have the numbers to back up your choice.
Bottom Line
Using the right real estate investment tools is a must when searching for property under 100K. Entering the US housing market seems unattainable for many individuals, with a median property price hovering around $200,000. Unfortunately, many investors can’t take on that price when buying a house for investment. Thankfully there’s a huge number of houses for sale under 100k, which could be a great start for first-time investors or a fantastic addition to the portfolio of any experienced investor.