Searching for my first rental property!?

Question

Hello BP community! I have a loan lined up, and I am in search of my first rental property. Any advice will be much appreciated.

Hector Salas · Answer

Thank you guys for your great advice.

Aaron W. · Answer

@Hector Salas

Welcome to the community!

Before you get started, know why you want to get into real estate investing? Are you interested in cash flow or appreciation? Do you need immediate cash flow or can it wait? What is your appetite for rehab? 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.

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.

Good luck!

Timothy Frazier · Answer

@Hector Salas

Try to find one turn key.

Best was is to buy an absentee owner list in the zip code(s) you’re wanting to invest in. You can remove all property types you don’t want as well such as commercial, vacant land, etc. before hand so you don’t pay for hits you don’t want.

Hand write and hand address a simple letter to the owner mentioning the absentee property and that you want to buy it and wait for the calls. Yellow paper red ink, use an envelope that looks as close to an invitation as possible.

Good luck.