First Time Rental Property Buyer

[Russell Leggett]

Hi everyone!

I am new to real estate investing, and I am looking for some advice. First, some background information. My two-year goal is to own one rental property, using the first year to save money, get rid of the little debt I have, and educate myself. Well, my friend is moving out of state and told me he intends to sell his single-family home within the next 3 months. I have not told him, but I am seriously considering buying his house with the intention of renting it. I currently own a home, but I have no experience in the rental realm (finding/screening tenants, rental contracts, basically everything). I don't want to overextend myself without having a plan and everything in order. Still, at the same time, this seems like an amazing opportunity that I want to investigate further. I would like to hear some feedback and possible next steps to take if I decide to pursue this opportunity. 

Thank you!

[Steven Mitchell]

Hey, @Russell Leggett - that's exciting to hear you're interested in getting into owning a rental! It's definitely a big shift but certainly doable for almost anyone :-)  I would recommend starting to find resources - I found Brandon Turner's book on Managing Rental Properties quite useful. You should reach out to some folks locally to see if you can find a good lease template that's been vetted by a lawyer. There are lots of online platforms for vetting tenants, keeping records, accepting payments, etc. Personally, I use Apartments.com but there are other options that would work just as well if not better. Then you get into the realm of needing a good insurance agent, and a RE-specific accountant. Otherwise, you might consider renting out your current property and buying the other home as your primary residence - financing an owner occupied property is much easier and requires a smaller down payment...just an idea. In any case, take it one step at a time, find good resources, take imperfect action, and use your best judgement. I just became a first-time landlord this past year and have now handled 8 different tenants with relative ease.  You can do it!