So... Me and my wife always had that dream to become financially independent, and finally decided to do something about it... We both have full time jobs, kids with all their home-works, projects and trainings, dog etc... Well it’s life I guess.
We are looking in to rent properties out, of course we don’t have any yet, but it’s only temporary. Need some advice how to start, what is the best and safest property to invest in, should I buy a fixer upper n fix it to put tenants in, or should we try to get newer property, which is going to take bigger down payment. Well, as I said it is just the beginning and thoughts are all over the place. Any advise would be greatly appreciated.
1. Absorb all the possible knowledge that you can and educate yourselves to the point where you feel ready (or at least somewhat) 2. Build your team. Your team will be consisting of a realtor, Property manager, CPA, Attorney, lender, etc. They will be able to advise your decisions and share their experience 3. Set your goals and let them be known!
Hi @Timofei Kadkin Welcome to BP and investing! The best way to get started is learn all you can about real estate, listen to the BP podcasts, read everything you can and engage the BP community. That can help you find the best way to invest. Plus you'll see there's many different ways to invest: buy and hold, flip, etc. One of those might make more sense to you than the other, depending on your long term goals, how much capital you have access to, etc.
To answer your specific question, it seems like the real choice is between finding/rehabbing/renting a property yourself or investing with a turn key provider. There are pros and cons to each. The pros to investing on your own is that you could potentially make more money (capture equity) because you're getting a property at wholesale price. The downside is that unless you know the costs to rehab, and rent the property, and everything goes well, you could break even or lose money. The advantage of a turn key is that it's generally safer because, assuming they're a reputable company, they've done lots of deals and thus are selective about which properties they sell to investors. Some even offer a guarantee on the first year of rent. The downside is that there's less money to make because you're getting a property at retail value after the rehab has been done.
A turn key property is probably "safer" for a new investor, but an experienced investor will know how to manage risk and where to invest for bigger profits. Best of luck!
@Timofei Kadkin It all depends on how much time you have available, how much experience you have and whether the property is local or not, Doing a fixer upper is definitely more risky than buying something turn key with a tenant.