Looking for guidance - First Investment Property

[Yogendra Joshi]

Hello All - I and my wife own a house in Cumming, GA and currently we have 6 months emergency (66k) and currently also sitting on another 85-90k ready to be invested in Real Estate. We always wanted to invest in properties and I have been reading BP forums and some are truthfully awesome stories while some are horrible experiences from first timers.. I would like to understand how can I begin our investment journey- Is it looking for a smaller condo? Smaller house with No HoA? Good schools? Nearby Colleges? How do your decide as an investor if a certain deal is good to go or not.. I know BP has Investor Friendly agents - is that a paid service or just like  any other Buyers Agent they assist in finding great investment property deals and due on their commission?

I would really appreciate some guidance here!

[Drew Sygit]

@Yogendra Joshi some random info to think about:

1) Most agents are actually commission-friendly, with less than 5% actually being investor-friendly.
- An investor-friendly agent should own rentals and fully understand our investor lingo!

2) Try to invest locally. Investing out of state is risky and you should learn more locally before trying OOS.

3) Condos can be risky. HOA fees & special assesstments can kill cashflow. Many have investor limits and specific rental requirements. Also, one HOA Board meeting vote can change everything for rentals:(

4) Recommend focusing on Class B properties for you first purchase. Class A won't cashflow for 3-5 years. Class C is too risky for newbies. Class B may take 1-3 years to cashflow, but will be a good learning experience and you won't be in over your head.

You should be running numbers on properties to familiarize yourself with the process and what works. 

Pick out 2-3 (no more!) Class B Neighborhoods to focus on and learn them well. This will allow you to act fast if you find a deal.

Even if you plan to pay cash, get preapproved by a lender familiar with rentals. You never know...

Find local and online RE investor groups where you can network and accelerate your learning.

Good luck in the New Year!