First Purchase? Home/Rental

1 Reply

I am looking at my first purchase as a new investor/home owner.  I am currently looking into a single family home(for myself) with an attached apartment upstairs.   The apartment currently has a tenant that has been there for quite some time and current owner says they have always been a "good" tenant.  I'm hoping that purchasing this home will get me into a new home as well as have a tenant pay rent that covers my mortgage.  What specific things do I need to know/remember when putting together a deal of this kind?  Insurance, Mortgage, Taxes, future repair expenses, additional costs that I may be missing?  I am looking at this and trying to save myself money but at the same time turn this into a first investment rather than just a first home.  Down the road I would like to turn this place into a dual residency rental property rather than my home and a single rental space.  What book should I read, forum post should I follow, or who should I talk to about making sure that I have all my bases covered when trying to work through a deal of this specific design?  Any help would be greatly appreciated.  I am very new at this and am willing and eager to learn but want to make sure I'm looking and learning in the correct places!  Thanks for your help...

Make sure the current tenant is someone you would want to live under/next to for a long time.  Sometimes Landlords sell houses because they hate the tenants that live there, so do what you can to feel out and visit the current tenant.  Look at the lease and the pay history for the tenant.  I've lived in the same buildings as tenants and it always made me more selective of who my neighbors would be.

It's best to either have a little know how to have some cash for when needed repairs arise.  As well as a plan for if the tenants moves out and you need to rent the unit.  How will you advertise, how will you prep the unit for the next tenant, what would you do and who would you call if the tenant needed to be evicted or trashed the place?  Having these numbers on hand makes things way easier if they happen.

Read the Bigger Pockets Forums for starts, there is a ton of good advice you can gather.   Books I like are obviously Rich Dad, Poor Dad - Robert Kiyosaki, Real Estate Riches - Dolf De Roos, The Millionaire Real Estate investor - Gary Keller are a few good ones to start.

After reading and studying for a while, you just need to do it!  You'll learn more from doing it than reading a book.  Good luck!