…..Continued from here.
I would go back out of town to buy property. This time I would buy single family homes. The row-house complex was too difficult to manage for many reasons. It was also in the absolute worst area of the city, flooded with drugs, prostitution and violence. I didn’t want any part of that again. It was unsafe and definitely not worth it. This time I would buy homes in slightly better areas, attracting more desirable tenants. I would stay in low-income neighborhoods, for the best value and return on the buck, but not extreme ghettos. I would buy in many different areas, as not to put all my eggs in one basket, and avoid herding tenants to a condensed group, which can also be problematic. I would buy properties that needed some work, but not too much, again this is the best value.
My plan was to pick up as many properties for short money as I could without creating too much of a time commitment for myself. I did not not want to leave my kids 4 days a week again, like I had when I did the row-house project. That was too much time away. This time would be different. My pace would be much slower. I allotted one day of travel per week.
I would also have guys down there that would complete the renovations under a contract. I was no longer willing to supervise a crew. I would only turn over 2 homes at a time ensuring that I was able to adhere to my one day a week on-sight goal. I would use that day to check progress, look at potential new purchases and rent the units.
The plan worked. I spent the next 2 years back and forth, one day a week. I had completed 17 homes.
At the end of 2 years I got VERY lucky and fell into a great deal. I put my out-of-town single family rentals on hold.