I work with two investors who buy rundown homes, fix them up, and rent them out. For one of these two he is making about $8,000 per month in rental income. The other has just started and the picture shows his first flip. Instead of renting this one he decided to sell, making around $35,000 in 4 months time.
My son-in-law asked me about investing in properties like this yesterday. He is interested in the income from rentals. It might be a nice fit for him because he has the cash to buy a home and renovate it without debt and, most importantly, he is handy and can tackle many of the jobs required to bring a tired home back to life.
The biggest impediment to this type of operation is finding a suitable home. Inventory for these homes is very, very low. When one hits the market it generally is sold in hours.
So, if you are interested in purchasing income producing property, give me a call and let's discuss.