Investor · Seattle, WA · Member since 2018 · 7 posts · 0 votes
Hey Folks,
I am totally newbie here and getting ready to get my hands dirty with rentals. Being not from the same industry in my current situation, I know it took me well over a decade to first understand how I can optimize my earning potential and then eventually somewhat be successful in that.
For real estate, my question is for all experienced folks there what will be your advice for me to follow so that I can attain some level of success in this business? What to do and what NOT to do? Anything that you thought if you would have know when you started, it would have accelerated your growth potential. Thanks in advance for your help!
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
8y
@Usman K. While some may disagree, I say as a new investor, buy in a neighborhood you are very familiar with. Understand the “class” A,B,C, etc... know what rents areas well as vacancies.
Aim for a property that requires mainly cosmetic work. Try to keep the rehab simple and on budget.
Run your numbers, then run them again, them have someone who’s actually been doing this for a while run them 😁
Most importantly, Jump In There! Avoid the paralysis by analysis.
Best of luck!
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
8y
@Usman K. While some may disagree, I say as a new investor, buy in a neighborhood you are very familiar with. Understand the “class” A,B,C, etc... know what rents areas well as vacancies.
Aim for a property that requires mainly cosmetic work. Try to keep the rehab simple and on budget.
Run your numbers, then run them again, them have someone who’s actually been doing this for a while run them 😁
Most importantly, Jump In There! Avoid the paralysis by analysis.
Best of luck!
Investor · Seattle, WA · Member since 2018 · 7 posts · 0 votes
8y
@Mike Dorneman thanks! Great info. However, the problem with where I know markets (my area) is that its crazy expensive to get in and the rent to price ratio will have me invest way too much money for almost 0 cash flow. West coast ... sigh! So I need to find alternative markets.
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
8y
@Usman K. I get that. Well another option may be to partner with an ezper once’s investor in a different area. Maybe you bring the cash, they facilitate the deal... Unlimited options as to how you could stricter the partnership.
Good luck!
Rental Property Investor · Dayton, OH · Member since 2016 · 210 posts · 160 votes
8y
@Usman K., I totally get it. My Market is crazy expensive also. To that I say thats where forming a relationship with a realtor you trust comes in. They have the neighborhood knowledge you need. Take a visit there first. Have your realtor show you the class of neighborhood you are looking for. The running of the numbers can be done from your home.
Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
8y
@Usman K. I only invest OOS as I live in SF Bay Area. Pick 3-4 markets and research. Out of those fly out to your top 2 choices and learn more about neighborhood. Also, you will learn the best after you pull the trigger and purchase your first property.
Real Estate Broker · Birmingham, AL · Member since 2018 · 18 posts · 11 votes
8y
@Usman K. I'd recommend choosing a market that'll allow for cash flow. Search in the market for partners - by partners I mean a local Realtor and Property Manager, if not all in the same. Having a Realtor/Property Manager that knows the market and not only the market but the tenants that'll be renting from you will give you a very high advantage. I've in the past had clients fly into town for a weekend and allow me to put them in my car and give them a tour of the city - that's where you'll learn the most. Things are much different when you put boots on the ground that they are from Zillow / Trulia. Do first hand research and make a mini-vacation of it... and at the end of the day the trip can be a write off!
In a nut shell, choose a market, find a local partner you trust and pull the trigger!
Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
8y
@Usman K., my advice is to do a self evaluation. Look at the work that needs to be done as an investor and a landlord and look at your own skills and desires, and then decide where in the process you want to add value.
For example, do you want to self manage or hire a property manager? Do you want to deal with service calls in a hands-on way, or hire that out? Do you want to find and negotiate deals, or build relationships with realtors and wholesalers who bring you deals?
If you understand where you can add value and where you will be hands-on in the process, I think you will be off to a good and productive start.