Myself Umang, since last 2 months i have been researching about getting into real estate as a business from investing point of view. Have so many questions that pops in my head while listening to the podcasts.
When analyzing a deal, we need to know rents we could get, what is the best way to know that and making a shift from primary residence to first rental property, how do you get financing done?
@Umang Rajyaguru Welcome to the community!
Before you get started, know why you want to get into real estate investing? This is going to be your guide throughout your roller coaster journey and will keep you looking forward through the good and bad days. After you know your why, work backwards to establish short-term and long-term goals to help you accomplish your why.
Understand what to you constitutes a great deal. This is typically a personal decision and can include specific returns you want to see from a deal. This will also help you stay focused and to not give in to a make a bad deal work.
One of the most important skills of an investor is deal analysis. You will want to practice analyzing deals everyday, even if you don't plan to buy yet. This skill is invaluable and a perishable skill.
Figuring out rents are localized to every market and neighborhood. BiggerPockets has a tool to get an estimate on rents. There are also other online resources to do the same with a popular one being rentometer.com. A property manager in the market you are interested in investing in will be an excellent resource as well.
There are many ways to finance a rental property including traditional bank financing, seller financing, hard money, private money, partnerships, other investors, etc.
Continue educating yourself everyday as there is too much information to learn in a short amount of time. Know that mistakes will be made, but the great thing about real estate is that over time and if purchased right, many mistakes can be mitigated or overcome. Don't be afraid to make the leap. Analysis paralysis can and does stop many from moving forward. Some of the best learning comes from jumping in and figuring it out.
@Umang Rajyaguru welcome to the community! I like to use a combination of 3 tools to set a rental price. I run the analysis with the BP calculator, I check recent rental rates on rentometer (even the free analysis can help know you’re in the ballpark) then I check wherever most places for rent are listed in your area (in my area it’s primarily Zillow and fb marketplace) to know exactly what would be tenants other options are at that time. That will get you pretty dialed in on price point! Biggest advice is taking action and not over analyzing! Good luck!!
thank you so much Roy cleeves, David Williams, AJ H, Chris Baxter. These was important piece of information, i have had these questions from the day 1.