Choosing my First Investment Property

[London Stewart]

Hey BP,

My father has agreed with being on board with helping me purchase my first rental property. At this time, it seems like he is only comfortable with putting down $20,000 on this investment.

We plan on finding a property in the Minneapolis area. He wants to do a duplex, but we are still weighing the pros and cons about a SFH vs. multifamily homes.

Do you guys think I can find a multifamily home that is worth $100,000? 

Is it necessary to set up a LLC right away before purchasing our first investment?

Any advice about buying my first rental property (tips about financing, location, insurance, etc)? 

[Tim Campbell]

Originally posted by @London Stewart:

Thanks for the advice, Tim. I am certainly going to start looking at more SFH since you mentioned that. When looking up properties on Zillow, I see a lot of foreclosed homes. Should I be looking into these properties or are they a bad idea?

REO prperties in Minnesota are a great idea. There are REO properties in nice neighborhoods selling in MPLS metro for $60k-$70k right now. I have an offer on one now that needs $20k in rehab funds to get it occupancy ready. I'll be all-in at or under $100k and will find a tenant at $1250/mo in rent. I'll do that deal all day long.