What are some tips for getting started in purchasing and renting out multifamily homes?
@Andrew Hawkins welcome to BP. You don't elaborate as to number of units, or where you are at. So to generalize............ decide on what your goals are, join a local REI group or your State LL Association and attend meetings, learn to underwrite, learn your state LL tenant laws whether or not you plan on hiring a PM. All the best!
You need to be more specific to get the most out of help on BP. You are basically asking what kind of music is good. When you say "getting started," what are your plans? Do you have your own money? What experience do you have? Why do want to get into it? Are you planning on living in the investment? There are A LOT of very experienced investors on here, but to get the best bang for your question don't be so general and give us more information about you and your goals.
@Jonathan green I appreciate the input and will be more specific in the future. I am interested in multifamily homes. I am in the military and would be eligible for a VA loan. I have $20000 and am looking to purchase a duplex under $250,000. My goal is to eventually make enough money to get out of my job and live off of. My Area I'm am planning to buy in is Dayto Ohio. Dayton has a pretty hot market from what I have been seeing. I have been using relator.com to track the market. So my question is, is there any better website to see the deals sooner and is it important to see the property before I buy if I have an agreement in the contract that me purchasing the home is contegent on everything checking out when the inspector comes?
@Andrew Hawkins Assuming your contract has a due diligence clause (which is pretty typical), then you can back out of a contract anytime during that due diligence period due to an inspection finding or often times if you just find something you don't like. The contract shouldn't be binding until after your due diligence period, which you'd then lose your escrow if you backed out once the due diligence period was over.
If you find a good agent they may have what are called pocket listings or off-market deals, which aren't on the typical MLS (which you are seeing on realtor.com). You might consider using direct mail to properties you might be interested in. Which neighborhood are you willing to buy in? Are you putting 0%, 5%, or 10% down with the VA loan? Have you been prequalified with a lender already?
@Eric Mielke Thank you for your advice. I would be putting around 5% down with my VA loan. I have been qualified but from what I understand you would need to purchase your home within 90 days of the qualification. Is there any way to extend that period?
@Andrew Hawkins Are you looking to house hack with the VA loan?
@Andrew Hawkins You've got good questions. You can get access to other deals and network with other investors by checking out your local meetup. It's a great opportunity to expand your network and get a lot of the answers you're seeking. Several us have used VA loans and other means to get our first deals done.
Here's a link to the next meetup.