Buying my first rental property
Finally got sick of my money sitting in the bank,getting bored,and want to get in the game of real estate.What I'm asking is as a first time investor in rental's would like to read your advice for what I should look for.The thing I'm afraid of most is missing critical info or not asking for the right answers before I invest,so it wont hurt me in the long run.
The range I can afford is $16k-25k,tommarow I'm looking at a property that already has a occupied tenant in it,and it's part of a sellers package.The property in the area has a potential cash flow of $200-300.The place I'm going to invest in is at area that has a lot of properties that need rehab,hard for people to get financing to buy properties,has section 8,but it has alot of profit potential in rental.
The area is I'm investing is kinda jumpy because one block might be looking excellent,houses look good,places where people will buy,rent,rehab,sell etc.. the block right next to it might be a jungle,a crap hole,vacant houses everywhere.Investors here tend to like rehab one block at a time.
From what it looks like,with the adjustable rates that screwed alot of homeowners,and rehab investors left pretty much of that section up for sale,and now other investors are buying properties off their mistakes,even some properties that where almost done in rehabed.
Where I'm going to be investing is in a area that is near the main highway through out the city.Which will be easy for the tenants to get to their work,take their kids to school etc..houses usually go for 30k-50k in the area.The Apperication is 3%-5.5% here,in nebraska.I know my first investment is very critical,from what I know,and what others have said of their experiences this is the best I can do.Thanks, for reading
-sun