{"id":55002,"date":"2020-01-28T12:00:57","date_gmt":"2020-01-28T19:00:57","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=55002"},"modified":"2021-03-16T10:16:50","modified_gmt":"2021-03-16T16:16:50","slug":"2014-03-08-buy-rental-property","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2014-03-08-buy-rental-property","title":{"rendered":"How to Buy a Rental Property in the Next 90 Days (With Bonus PDF!)"},"content":{"rendered":"<p>I was sitting down for dinner with a friend a few years ago, and he said to me, \u201cBrandon, I want to buy my first property, but there is so much information out there. I just want to see the whole process, neatly outlined, so I know my step-by-step plan.\u201d<\/p>\n<p>And I thought, <em>\u201cIsn&#8217;t that what we all want when learning something new?&#8221;<\/em><\/p>\n<p>We want to see the whole picture, not just broken up parts.<\/p>\n<p>Today I want to help you do just that\u2014learn the step-by-step process for getting your first rental property in the next 90 days. <span style=\"line-height: 1.5em;\">For those of you who like something tangible to look at, at the end of this post, I\u2019ll show you where you can download a free one-page PDF summary of this process\u2014neat and clean, just like my buddy ordered.<\/span><\/p>\n<p>Alright, let\u2019s get started. Watch the video below or read on for eight entirely doable steps.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/6s-di17zx1A\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Step One: Get Pre-Approved<\/h2>\n<p>Unless you plan on paying cash (which would be great), you are going to need a pre-approval letter from the bank or other lender.<\/p>\n<p>We start with this step because I don\u2019t want you wasting time only to find out you can\u2019t afford it. Your lender will help you know exactly how much cash you\u2019ll need.<\/p>\n<h2>Step Two: Get in Touch With a Real Estate Agent<\/h2>\n<p>Don\u2019t just call the name on the park bench by your house. Look for an agent who is willing to spend the time needed to help you get the perfect deal.<\/p>\n<p>Get recommendations from others, and pick someone you get along great with.<\/p>\n<p>The best part is, a real estate agent is paid by the seller\u2014so it\u2019s free for you to use one!<\/p>\n<h2>Step Three: Define What You Are Looking For<\/h2>\n<p>Let your agent know exactly what kind of property you are interested in. If it\u2019s a duplex, you don\u2019t want to waste time looking at single family homes. And vise versa.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/definition-good-deal-real-estate\" target=\"_blank\" rel=\"noopener noreferrer\">What\u2019s a \u201cGood\u201d Deal in Real Estate? 5 Criteria to Consider<\/a><\/em><\/p>\n<h2>Step Four: Start Looking<\/h2>\n<p>Yes, you\u2019ll actually need to spend some afternoons with your real estate agent looking at potential properties. And like dating, the more you look at, the better you\u2019ll recognize \u201cthe right one\u201d when it comes along.<\/p>\n<p>Don\u2019t be afraid of looking at properties that might need a little TLC, but don\u2019t get in over your head either. Once you find the right one, you\u2019ll need to do step five, which is&#8230;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-108892\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/03\/find-rare-deal.jpg\" alt=\"Male Traveler Looking Through Binoculars In The Distance Against The Sky\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/03\/find-rare-deal.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/03\/find-rare-deal-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h2>Step Five: Do the Math<\/h2>\n<p>A rental property is only as strong as its math.\u00a0Run the numbers, and make sure it pencils out.<\/p>\n<p>Be conservative, and be sure to plan for property management, vacancy, repairs, and more.<\/p>\n<p>I\u2019d recommend running the numbers through a good property analysis tool, like <a href=\"https:\/\/www.biggerpockets.com\/calc\" target=\"_blank\" rel=\"noopener noreferrer\">the BiggerPockets Rental Property Calculator<\/a>, to make sure you are looking at <em>all<\/em> the facts and figures.<\/p>\n<h2>Step Six: Make an Offer<\/h2>\n<p>Okay repeat after me: I WILL NOT OVERPAY!<\/p>\n<p>Negotiate with the seller and stick to your math from step five.<\/p>\n<p>You might go back and forth a few times, and you might even lose the deal and have to start over. But whatever you do\u2026<\/p>\n<p>DO\u00a0NOT OVERPAY!<\/p>\n<p>Soon enough, you\u2019ll get an offer accepted and you\u2019ll be ready to move on to&#8230;<\/p>\n<h2>Step Seven: Do Your Due Diligence<\/h2>\n<p>At this point, you want to make sure there are no hidden surprises at the property. Hire a property inspector to walk through every inch of it looking for potential problems.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/due-diligence-ultimate-guide\" target=\"_blank\" rel=\"noopener noreferrer\">The Ultimate Guide to Due Diligence<\/a><\/em><\/p>\n<p>If you find any, either:<\/p>\n<ul>\n<li>Suck it up if it\u2019s not too bad.<\/li>\n<li>Ask the seller to fix it if it is bad.<\/li>\n<li>Or if it\u2019s really bad, walk away.<\/li>\n<\/ul>\n<p>During this time, your agent will help you shuffle the correct paperwork between them, your lender, and your title company.<\/p>\n<h2>Step 8: Close on the Property<\/h2>\n<p>It\u2019s been a journey, but finally you are ready to close.<\/p>\n<p>You\u2019ll show up to the title company (or attorney), and they\u2019ll take care of the rest. You might even get some chocolate at the front desk!<\/p>\n<p>Once the title and deed are recorded at the county, you\u2019ll get the keys and be the proud owner of your very own <a href=\"\/renewsblog\/2013\/01\/04\/how-to-rent-your-house\/\" target=\"_blank\" rel=\"noopener noreferrer\">rental property<\/a>!<\/p>\n<p>Now comes the fun part\u2014managing your properties. For tips on that, here&#8217;s <a title=\"How to Be A Landlord: Top Ten Tips for Success\" href=\"\/renewsblog\/2012\/12\/09\/how-to-be-a-landlord\/\" target=\"_blank\">another blog post<\/a>!<\/p>\n<h2>Key Takeaways<\/h2>\n<p>As promised above, I created a simple one-page PDF of these steps so you can print it out and hang it on your wall (or just keep in your files). To get it, simply click the photo below and head over to the BiggerPockets FilePlace to download it for free!<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/files\/user\/brandonatbp\/file\/how-to-buy-a-rental-property-in-90-days\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-55019 size-full\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2014\/03\/Screen-Shot-2014-03-07-at-5.27.08-PM.png\" alt=\"Screen Shot 2014-03-07 at 5.27.08 PM\" width=\"443\" height=\"596\" title=\"\"><\/a><\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/store\/rental-property-investing-physical\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-118746\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/11\/blog-banner-Rental-Prop.jpg\" alt=\"\" width=\"700\" height=\"120\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/11\/blog-banner-Rental-Prop.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/11\/blog-banner-Rental-Prop-300x51.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>Questions for me about this process? Stuck on a step?\u00a0<\/em><\/p>\n<p><strong>Let&#8217;s talk in the comment section below!\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn the eight steps needed to buy your first (or next) rental property in 90 days or less. Also, download a free one-page PDF to help you see the &#8220;big picture!&#8221;<\/p>\n","protected":false},"author":710,"featured_media":114319,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-55002","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/55002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=55002"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/55002\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/114319"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=55002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=55002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=55002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}