Hi all , my strategy is basically finding areas that are dense in population in a good neighborhood and have a demand for rentals and have cash flow. However I am unable to correctly identify ‘ research this and I am having analysis paralysis.
would you say to just find high cashflowing areas or should I just find an agent and trust his word. Like how can I ensure I am not just buying in some crappy area vs a good area with demand. I will be investing out of state so if I were to want to choose any state what would my first steps be ? any help would be appreciated to hopefully get my first rental by September
hello. i'm just going to be very direct. here are a few thoughts.
1. i don't think not buying means you have analysis paralysis. the market is tough right now. buying a bad deal is just going to set you back financially. "analysis paralysis" is a term created by people selling things to get you to buy so they can make money off your purchase. you need to look out for you.
2. i would not buy a property thousands of miles away because an agent or an Internet person said so. this is a recipe for disaster. see these threads.
3. how do you know if an area is good? you go there in person and see if it's good. if you can't do this, don't buy there. see above threads.
4. you're not going to cash flow any amount whatsoever, period, in the first few years of owning a rental property, or potentially even longer. none. $0. not any. i cannot emphasize this enough. it costs money just to buy - those costs are called closing costs. then it costs money to get ready to rent - maybe you need to do some sprucing up like painting. then it costs money to lease up - you might have to pay an entire months rent to an agent or PM. then something is going to break immediately. might be a doorknob, or the dishwasher, or the furnace. costs, costs, costs.