I want to get into investing in rentals for income, where should a newbie start?

Question

My goal is to eventually own several single family homes for monthly cash flow and value building and automate as much as I can so I can spend more time doing what I enjoy.

Much easier said than done, but I know that people do it and have successful businesses.

Where should I start my journey?  Is a REI club worth it?

Would it be a good idea to find a mentor and work for free, in exchange for mentorship?

Any and all advice greatly appreciated.  Thanks!

Mary B. · Answer

A newbie should start in the most familiar market known to them. Which 99% of the time is where they are currently residing / where they are from. Its easiest to start in your own backyard so to state. However, if you've just relocated to a new state / area code then maybe your prior home town is better. Still you should learn the housing market that you are in. That's just good REI business.

REI clubs are great for in-person networking which, imho, is very necessary to break free of internet paralysis. There are at least 1/2 dozen in every major city.

Everyone needs a mentor/coach whether they are newbie or seasoned. Some people may not admit it but if they have any business success they most likely have a mentor. Its always a fantastic idea to be in a position to learn while you earn. There's my Lincoln on it.

Kudos,

Mary

Ian F. · Answer

Account Closed

Thanks, glad to be here.

Kurt Kwart · Answer

Ian F. There is great advice given here. I am big on audio and podcasts work well for me.

I live and invest in Atlantic County and while I'm not in the double digit houses, I'd be happy to share what I know.  I have a rehab going now and it is keeping me busy.  Please reach out, you could stop by the house next week if you're available.

James Wise · Answer

Ian F.

welcome to the site.

Paul Timmins · Answer

@Ian Fenwick

Welcome. Start by learning everything you can. Time to build the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having over 90 past ones to catch up on.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

Consider checking out HUD homes for small multi's owner occupied gets first crack.

You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good luck

Paul

Ian F. · Answer

Awesome blog.  I want to travel in the future so I'll be giving it a good hard read.  It's good to know there are other people who travel and also maintain a rental business.

Ian F. · Answer

@Mary B.

Thanks for the advice!  I live in south jersey so I'll start looking here first and see if I can take the leap and join a local REI club.

Elizabeth Colegrove · Answer

Welcome to Biggerpockets!

Just by joining this awesome resource you have gotten started! We got started at 23 with personal property turned rentals. We all start somewhere so the key is to build an empire based on principles that YOU are comfortable :) We don't follow the 1%, 2%, or 50% rule but we have a business plan that works best for US.  We buy class A properties that are single family homes! So be flexible! Where we started is not where we are, and where we are today will we be in 4 more years. The key is to be flexible and to adapt!

Another great place is to look around the blogs, forums and listen to the podcasts. If you see a post you enjoy check out the persons signature. Many of us including myself talk about our strategies, styles, niches and business model on our website. So definitely check that out as it is an amazing additional resource. For example, my blog is about while working full time, buy and hold investing, 0% Down Rentals, Personal Properties turned rentals, Long distancing investing, self-managing 3,000+ miles away. Definitely list your blog in your signature. Its a great additional networking source.

Look forward to seeing you around! Let me know if I can help!

I want to get into investing in rentals for income, where should a newbie start?

Most Popular Reply