New Investor looking to purchase their first property

Washington, District of Columbia
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New Investor looking to purchase their first property

Andrae S Wiggins
Member since 2022 · 1 post · 2 votes

Hello BiggerPockets. I have had a long term interest in purchasing an investment property and I'm looking to be smarter about this. I think the first place to start is evaluating quality deals. Any advice/resources would be greatly appreciated.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
1y
Quote from @Andrae S Wiggins:

Hello BiggerPockets. I have had a long term interest in purchasing an investment property and I'm looking to be smarter about this. I think the first place to start is evaluating quality deals. Any advice/resources would be greatly appreciated.


 Welcome to BP.

My biggest piece of advice is to understand risk premiums in real estate. Most novice investors get the risk premiums backwards.

[email protected]301-893-4635Podcast Guest on Show #192
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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    Welcome. There are several steps before evaluating deals, but you may have done them. Do you have your finances in order? Do you have a pre-approval or proof of funds ready? You want to have your financial house in order so you know what you CAN afford and what you SHOULD spend. Those are different things. You don't want to overstretch on the first one.

    In terms of evaluating quality deals, you won't know what those are for a while so you want to get as many reps looking at properties as possible. You also want to go to real estate investor meetups to get reps with people who do what you want to do. Good luck!

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    1y
    Quote from @Andrae S Wiggins:

    Hello BiggerPockets. I have had a long term interest in purchasing an investment property and I'm looking to be smarter about this. I think the first place to start is evaluating quality deals. Any advice/resources would be greatly appreciated.


     Welcome to BP.

    My biggest piece of advice is to understand risk premiums in real estate. Most novice investors get the risk premiums backwards.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    1Reply
  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Hey Andrae, welcome to the community! My question for you is, what’s your definition of a quality deal? You need to set some criteria to help identify your "quality deal." For example, if you’re into turnkey properties, how much cash flow do you need for a deal to make sense for you? Also, for value-add deals, how much rehab are you willing to take on? Be sure to factor in repair costs to keep things profitable. Once you get clear on these, you’ll start to see what a quality deal looks like. And don’t forget to know your budget. Understanding what you can afford will help you narrow down deals that actually work for you!

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  • Brendan Harrison
    Real Estate Broker · Tulsa, OK · Member since 2020 · 157 posts · 67 votes
    1y

    Hello and welcome to BiggerPockets! Starting with deal evaluation is a smart first step. Here’s why Oklahoma might be a great market for you:

    • Affordability: Properties in OKC and Tulsa are often under $200K and offer strong rent-to-price ratios.
    • Landlord-Friendly: Simple tenant laws make managing rentals easier.
    • Growing Economy: Job growth in energy, tech, and aerospace fuels rental demand.

    How to Evaluate Deals:

    1. Run the Numbers: Ensure positive cash flow, check cap rates (6–10%), and use tools like the BiggerPockets calculators.
    2. Find Deals: Network with local wholesalers or agents, and look for value-add opportunities in stable neighborhoods like Edmond (OKC) or Broken Arrow (Tulsa).

    Let me know if you’d like tips on analyzing properties or finding deals!

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  • Malorie Moore
    Real Estate Agent · Memphis, TN · Member since 2021 · 88 posts · 50 votes
    1y

    Hi Andrae,

    You are in the right spot here at BP! Purchasing your first property can be nerve-racking so connecting with like minded individuals is a great start. I am happy to connect and answer any questions you might have. I have helped hundreds of new investors kickstart their investment journey. 

    Best of luck to you!

    1Reply
  • Dominic M.
    Property Manager · Northern Virginia & DC · Member since 2020 · 157 posts · 69 votes
    1y

    Welcome! local PM here - I would master underwriting and build out your network. Ask as many questions as possible - the better your questions, the better your responses. Every day is a school day in this business. Remember, your reputation is everything!

    1Reply
  • Julia Lyrberg
    Lender · TX · Member since 2024 · 308 posts · 196 votes
    1y

    Welcome to BP Andrae!

    0Reply
  • Melissa JusticeBusiness Member
    Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
    1y

    Welcome @Andrae S Wiggins

    There are REI opportunities in different markets - markets in the Midwest and Southeast of the country are great - where not only are the purchase prices reasonable for most RE investors, but the homes are turnkey (new builds or completely rehabbed homes, tenant ready, systems 10 years of life remaining on them, property management teams in place) with appreciating home value AND appreciating rent.

    Real estate is and always will be a good idea because it allows you to create lasting generational wealth and leverage cold, hard, tangible assets!

    It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you. It can be a lot of time and work if doing it on your own. It's helpful to work with a reputable team. That is what our team at Rent to Retirement has been helping investors to do for a decade now with BP. I'm happy to answer any questions you have about analyzing markets or getting started. Most importantly, choose a market that aligns with your goals!

    Wishing you the best of success!

    Melissa

    Rent to Retirement Investment Strategist

    [email protected]313-221-8718
    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @Andrae S Wiggins recommend you upgrade your BP membership to Pro to access the BP Calculators to evaluate rental purchases.

    Play with the numbers to figure out the purchase price that gives you your target ROI.

    That's the number you'll need to make an offer at, NOT what the seller is asking.

    Yes, you will get a lot of rejects, but whoever said investing was easy?

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  • Ryan Harrell
    Memphis, TN · Member since 2023 · 100 posts · 24 votes
    1y

    Welcome! Take your time and don't rush into anything. Read books, network, research markets, and plan your strategy. You'll be ready in no time. Good luck! 

    0Reply
  • Todd AndersonPro Member
    Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
    1y

    @Andrae S Wiggins,

    Welcome to the BP community, this is your first best resource.  

    As others have said, your first step is to define your investing goals.  Once you can define what you are looking for then you can create your "Buy Box".  I have learned over many years of investing and working with many different types of investors, that there are many different types of Quality Deals, and they are not that same for every investor. 

    Use the tools at BP to find what type of investor you are.

    Best of luck.  

    [email protected]651-492-5652
    0Reply
  • Rick Luebbert
    Real Estate Agent · Memphis · Member since 2021 · 41 posts · 25 votes
    1y

    Hi Andrae, the simplest and most risk-averse way to get started investing outside of your local area would be to contact TurnKey providers in the markets you are most interested. I encourage you to interview property managers to determine what their approach looks like when managing properties for an investor who does not reside in the market where the property is located. I would always lean towards markets that are landlord-friendly. 

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