Hello Fellow BiggerPockets Members,
I have no prior REI experience but is very eager to jump in and get started (not necessarily buying a house right away ) but to start building my network, knowledge and learn the ropes. Does anyone have any start out tips/suggestions on how and where I should get started? Any advice you can give me? We were all beginners at one time or another so I'm sure a lot of you have great advices to share with me.
I'm looking to purchase houses for rental purposes to give you an idea of what I'm looking to expand my knowledge. And I live in the Cleveland Ohio area with some familiarity with the real estate markets here.
Thank you in advance for everyones inputs. Look forward to reading the responses!
Look at every property as a separate business. The property needs to be able to support itself and put an acceptable return in your pocket each month. Make sure to calculate all possible expenses. Taxes, insurance, property management, vacancy, repairs.
Many investors make the mistake of underestimating the repairs and vacancy. Always plan for 2 months vacancy per year and set aside 200-300 per month for expenses when they arise.
In many cases you won't have 2 months vacancy every year or need all the repair money- but it's the right way to run the business. I've had pipes crack in my investment properties, tenants ravage the place when they move out etc. Just prepare- it gives you peace of mind.
Also don't buy older houses unless the plumbing is replaced. It only cost 3-5k to replace the plumbing in a house. It's well worth it up front. I always replace the plumbing, electrical, roofs and ac's on properties if they're 20 years or older.
Great Advice! Thank you Dustin!
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