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Where to start in real estate investing
Hi, I really want to buy a house for long term rentals to supplement our income for retirement. Still have many years to go before retirement .I don’t know where to start. I think I will be a passive investor . Hope somebody can help me what to do first . Step by step if possible pls.
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@Mila Hurst — great goal. Long-term rentals can be a strong way to build retirement income, especially if you start early. Since you want to be more passive, here’s a simple step-by-step way to begin:
1. Get clear on your finances.
Review your income, debts, credit score, and savings. Make sure you have a solid emergency fund (3–6 months of expenses) before buying.
2. Define your target.
Are you buying locally or out of state? Single-family or small multifamily? Decide what “passive” means to you (most passive = hiring property management).
3. Talk to a lender early.
See what you qualify for on an investment property. This tells you your realistic price range.
4. Learn basic deal analysis.
Understand cash flow, expenses, vacancy, maintenance, and cash-on-cash return. Don’t rely on appreciation alone — the property should make sense on paper today.
5. Build a small team.
Agent, lender, property manager (if going passive), and possibly an investor-friendly CPA.
6. Start conservative.
Buy one solid, stable rental in a strong area with steady demand. Keep reserves even after closing.
You don’t need to know everything to start — just enough to buy your first good deal safely.