When we were shopping for our first rental, we visited 2 very old 1920’s duplex’s on an acre which included 4 1960’s single wide mobile homes. I commented to my broker these are slummy. He responded, slumlords make alot of money, Diana.
We bought them cheap, have had them for over 20 years, huge cash cow, renters love the cheap rent.
Yeah there is that market. We notice it in the town we have rentals in but we don’t go that route. The town just celebrated it’s centennial last year.
We like the SWAN principle (Sleep Well At Night) so when we buy a building, we go in and rehab the entire building, new 200 AMP electric, plumbing, heating, hot water, drywall, fixture you name it. We get more rent that way.
Taxes are high here anyway but the tax codes PUNISH you for doing it the way we do by demanding most of it be depreciated rather than written off (unless you get into cost seg which we haven’t at the moment) we do all the labor and it takes us about a year to totally gut rehab the building from a burnout etc.