Updated over 5 years ago on . Most recent reply
First timer looking for advice
Hey guys, long post ahead, apologies in advance. My name is A.J. and I have decided to get into real estate investing (buy and hold method). I have been doing homework and research every day, and listening to podcasts more and more. I laid out a plan for myself, where I will hopefully be purchasing my first home next year. I am taking this time to get out of the small debt that I am in, and preparing myself with knowledge of the industry. I was informed that a friend of a friend is buying a new home and getting ready to move within the next two months. She wants to keep the old house and be a landlord, but lacks the funds and the patience to deal with it, so has decided to sell. I want to partner with her so here is what I'm thinking:
Have her keep the house in her name, and have me run it, like I would my own. I would be the "landlord" and take control of tenant screening, repairs, etc. It is a 2bd, 1 ba, house located in CT. A realtor told her that she would need atleast 1800/month to stay afloat. I would like to do this, so I can build my experience as a landlord, because I have no capital or assets of my own. So here are my questions:
1. Would it be a good idea, to take out a small personal loan to fix up the property, and potentially rent out the basement as well?
2. Is such a small property honestly a good rental investment?
3. Should I reach out to her in the first place?
4. How do I get started?