BiggerPockets

Well, first how do you plan to purchase the property?

Takes a bit more than that Travis. They will scrutinize your credit worthiness, your income, and your history.

As far as the property is concerned, have you completed a full financial analysis, included rents, operating expenses, debt service, capital expense reserves, and cash flow? A professional home inspection is also key especially for a newbie in addition to the termite inspection. Make sure property appraises, line up a quality property management company (unless you plan on managing yourself, in which case, you had better get well versed on that as well). You will need repair people, handyman, contract service providers, etc. You need at least one if not two exit strategies planned, a cash reserve for rainy days, and I am sure I am missing some things as well.

Post your financials here and we all can help you out. :lol:

Lots of variables in your assessments. My first question would be why are you buying a triplex at almost 90% of appraised value?
Second would be what is the income on the property?

There is only one electrical meter therefore I plan to do a all expenses included up to $150.00 for $550.00. Rental get rented faster here. I could have the house full in about 2 weeks.
It would bring in about $1650.00. After 200 for repairs, 600 for note, 100 for insurance, and 450 for utilities. That totals 1350.00 and should leave me with about 200.00-400.00 positive cash flow.

How do you usually go about getting your investments?

You just keep an open eye or what do you look for?

How to do you build relationships with title companies and agents? Sometimes I think of paying an agent to think of me when there comes a good deal. What do you recommend on building relationships with lead generating prospect?

I agree with the others that this is a bad deal. I NEVER buy apartment buildings if I have to pay utilities. That's a recipe for disaster.

As Will said, you left out a BUNCH of the real world expenses such as taxes, management (even if you do it yourself), vacancies, advertising, office supplies, legal fees, entity maintenance, evictions, damage done by tenants in excess of the security deposit, lawsuits, capital expenses (not technically an operating expense), etc, etc, etc.

How do you find great deals on rentals? The short answer is HARD WORK! Great deals are not often simply found on the MLS. I've gotten most of my best deals through personal contacts. My suggestion is to tell everyone that you know and meet that you buy property (at a discount). Many of your family and friends will know someone in the next year that MUST sell a house (a desperate seller). If you stress to your family and friends that you're looking for these properties, they'll think of you when they hear of someone who is distressed.

I would also join your local REIA and make friends with the SUCCESSFUL investors in your area. You would be amazed at the number of deals that are passed between the successful investors (often for free). In addition to the deals the successful investors pass between themselves, they often have leads on deals that they don't want to do for one reason or another.

Good Luck,

Mike

Offer him $1000/month for five years. You'll be negative while you're doing that, but after five years, you own it free & clear.

I'd try to figure out some scheme for doing utility billbacks.

Nationwidepi

Enjoy reading your posts but the statement you made that it is not legal for an agent to receive funds outside of closing is 100% wrong if your talking about fees for service.

In California a broker can be paid fees for services before, during, or after a deal, and as a matter of fact there doesn't even have to be a deal just a consultation..

There is no law on the books with the restriction you indicate in California,and I never heard of one in any state..

Billbacks are charging tenants for utilities you have to pay. It can be simple or complex. You might just say "unit A is 60% of the square footage, unit B is 40%, so A has to pay 60% of the gas bil and B has to pay 40%". Or, it could be as complex as a system that's attached to a hot water heating system that monitors which valve is open when, and then you use that to split the bill. RUBS - Residential Utility Billback System is the name for those systems.