I have a situation where a landlord is wanting to get out of the business, and I could pick up 7 houses for really cheap. I've run the numbers on the calculators here and there's money to be made. The biggest set back is these houses are pretty sad. They need a lot of repairs. I've accounted for that in my numbers and still come out doing decently. SO here's my questions - Am I completely stupid to take on 7 rentals as a complete newbie here? Is is possible to do any work on these houses while they're occupied? I don't want to lose the current tenants, that have rented for 4-7 years. Any thoughts/advice are greatly appreciated!
if they are cheap, buy them. Long term tenants are a plus. I would not do major interior upgrades with tenants living there. Exterior paint, roofing and curb appeal is fine.
Don't do anything to disturb lead paint with tenants residing.
Buy them, collect and stock up on the rental income, and rehab them if any ever move out.
@Dawn-Marie Black welcome to the site.
I would get an inspection on all of them just to make sure you know what needs to be repaired. I agree with Arlan, long term tenants are a plus.
Welcome. Properties are often bundled because 1 or more are not performing. Time to build the foundation below.
Consider getting a property manager on board go to IREM.org search for ARM certified property managers. Call 5 ask them what sides of the city they like/dislike and why. Ask what they see them selling for and what expenses are by category. Ask if they know anything coming up for sale. Select one to manage your properties and learn from them.
Check out the Start Here page http://www.biggerpockets.com/starthere
Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.
Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 70 past ones to catch up on.
Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Thanks so much for the warm welcome and the helpful info! I have listened to a few of the podcasts and got the book...now to just read it! I will check out some property managers @Paul Timmins and see what happens. Thanks again!
Property inspections required
Check for city code violations
Perform your due diligence (utilities, rental agreements, occupancy/vacancy, and etc)
Seller financing would be very nice option ( lower your DTI ):
-> 5 to 10 years, if possible with nice interest rates
-> 60% loan to value financing with 30 to 40 % seller carry back 2nd mortgage
Seller financing: hire real estate attorney, title /closing company, and RMLO
Only a suggestion
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