Buy and Hold Questions
Hi Everyone,
I am new to BP and real estate investing in general. Except for my introduction post a couple days ago, this is my first substantial post on BP.
Around this time when I have a full-time job after graduating law school next year, I plan on acquiring 1-2 SFRs or multifamily properties and utilizing the buy and hold strategy. While I have been listening to podcasts, watching webinars, and reading the forums and blog posts, I still have a few questions regarding the strategy:
1) For those who are making their first investment, is a SFR, rather than a multifamily, a logical first step? I originally thought a SFR would be a good chance to get my feet wet in real estate investing but as I learn more, the benefits of multifamily properties are very appealing to me.
2) For a buy and hold property, is there a rule of thumb on how much should be attributed to rehab costs before bringing in a tenant? What would some of those low budget costs be (shutters, carpeting, paint, appliances, etc.)?
3) For your first property, would you recommend taking on a partner who can finance 100% of the deal or obtain a conventional loan? I understand that the answer to this question can vary based on everyone's personal circumstances.
4) On a few webinars, I have seen Brandon Turner use a BP calculator to evaluate a deal. For the "variable landlord paid expenses" (e.g. vacancy, repairs and maintenance, capital expenditures, management fees, and other fees), is there a rule of thumb for what the percentage of these costs should be?
5) What is the one piece of advice that you wish you knew before buying your first buy and hold property?
I appreciate any input that you could provide.
Ian