U.S. Real Estate Investor Diary – Irish Mom buys 10 high yield properties

I bought 2 properties from this Irish investor recently and got to know her well through the process. This is an interesting story to share.

She is from Dublin, Ireland, she said the country had been in recession since 2007 and unable to find ways to produce income.

Jobs were hard to find and she needed to utilize her small savings of Euro $100,000 to do something until she could find a steady job or set up a business.

She was very brave and took chance in investing into U.S. properties, she was attracted to high yield opportunities in U.S. residential homes and focused on very small properties, typically below $20,000.

It is a strategy that many investors reluctant to do so, but she decided to take the chance – she bought a series of properties ranged from $10,000 to $15,000 with average yield above 30%, this typically means rent around $350 to $450 a month.

Her strategy was mainly looking at property in 1920s and 1930s which tend to be smaller, 2 bedroom properties and rented to smaller families, often single parents. In the end, she bought 10 properties in total at a total $110,000, the rental yield was quite impressive, she was getting US$4500 a month from her portfolio, her net yield was above 30%.

These properties are tiny properties, and I bought one from her recently. They are well maintained inside and what I call as “essential” properties. She did make improvements to essential items such as furnace and change water heaters where required; and ensured that roofs are in fair condition for the sake of safety to the tenants.

It is an interesting strategy to learn for investors chasing high yield returns and not afraid in buying older properties.