Hello and welcome to another episode of Ask Marco on the Passive Real Estate Investing Show. I'm your host, Marco Santarelli. Thank you for joining me. And if you are a new listener to the show, remember to subscribe. It only takes you about three seconds to click that subscribe link or button, and you will never miss an episode. We put one out about once a week, sometimes twice, but on average it's once a week and we cover a different topic. And sometimes we have a guest from every subject matter you can think of, from mindset to real estate investing, to wealth management, to asset protection, to whatever it may be. So join our family of real estate investors and do that by subscribing to the show. Well, I wanted to do an Ask Marco episode. I haven't done one in a little while, and I went to my folder where I get emails that come in from the website on the Ask Marco form.

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And one of the ones that came in just recently here was one that I used to get fairly often. I haven't seen it in a while, which is surprising given how much property values have increased over the last three to four years. And the question is basically this, should I invest in a cheap property? Interesting question. So the question came in from, I believe it's Yair, I'm not sure if I'm mispronouncing your name - YAIR, and Yair writes in and says, hi, I'm a 22-year-old looking to invest and you said at the end of your podcast that you're happy to help. Of course, we're all happy to help here. I currently have around $60,000 and I'm hoping to buy and then rent a property out. I have looked into Jacksonville and maybe North Carolina. If I could have a call or conversation with one of your team members, that'd be greatly appreciated.

Absolutely. So y I've already emailed you back and connected you with my operations manager so she can connect you with one of our available investment counselors and you can have a conversation and then they'll help point you in the right direction. And we'll just answer whatever questions you have. And if it's something we can help you with, we will definitely let you know. Let's answer this question. Should I invest in a cheap property? Well, the first thing we need to do is define what we mean by cheap, because cheap can mean different things to different people. The thing we don't want to do is confuse cheap by absolute price. And the reason I say that is this cheap depends on where you're looking. It is relative to the market and it's also relative to the neighborhoods. So for example, if you were looking for a cheap quote unquote property in the San Francisco Bay area, that might be a six, seven, or $800,000 property.

Whereas if you go to let's say Memphis, Tennessee, or let's say Indianapolis, Indiana, something that we will define as cheap might be a an 80,000, 90, a hundred thousand dollars property. So it really depends on the market and more specifically the neighborhood. You see, every market has a price range. There's the low end and the high end. So if you look at all the properties in any given market, you will see properties that start at a certain price and top out at a certain price. And if you really just cut the top 10% off of that range and the bottom 10% off of that range, what you're left with is essentially the effective price range for a market. So in a market, this is a hypothetical example, but we could look at Memphis, Tennessee or Indianapolis or Kansas City or something like that. You might see that properties generally speaking will start in the 80,000, 90,000, a hundred thousand dollars range on the low end.

And we'll certainly go up to the multi hundred thousand dollars price range on the high end there. There'll be a million dollar properties in certain neighborhoods. But effectively speaking,