What should I be looking for in rental properties?

5 Replies

Hi Zachary, that's quite an open ended question you've given the forum! How much money down do you have, what markets are you looking in to, are you looking for one with 1% rule or the illusive 2% rule? How much involvement do you want in the managing of the property, do you want a fix up or something that is ready? What areas do you want to invest in?

I think people will have a hard time to offer you advice. Try to detail more what you are looking to achieve from the property, otherwise you may not get much help. 

We need a little more information to help you. How much you have for a downpayment will dictate what you can buy. With an FHA loan you can be in a house with 3.5% down and a 620 credit score, but you have pmi for life. I bought my house with only 5% down using conventional.

Are you interesting in Buy and holds or fix and flips?  If you plan on buying houses that need work you will need to have extra money set aside for repairs.  You can find properties in St. Cloud under 160k that are pretty close to rent ready with minimal repairs needed.

No idea for your markets in the States, but if you are looking to house hack, then you have to be looking for duplexes, rent one unit and live in the other. Does the rent cover the mortgage? How much out of pocket will you be?

Knowing how much rents will be, can help you steer in the right direction for a deal so you can house hack. Pretty sure there is plenty of info on here how to house hack :-) 

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