Looking to purchase first investment property
Most Popular Reply
Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes@Bryan W.,
Hi and welcome to the BP community!
It’s great to have you here, and you’re already taking the right first step by reaching out and looking to connect with others. Finding a mentor or solid network early on can make a huge difference as you navigate your first investment.
If you're open to it, turnkey rental properties might be a great way to get started—especially if you're looking for something lower-risk with built-in property management and cash flow from day one. They can be a great option while you’re learning the ropes and figuring out what strategy fits you best.
Feel free to reach out if you have questions or want to talk through different markets or strategies.
Best of luck,
Melissa
17 Replies
- Real Estate Agent · Grimes, IA · Member since 2022 · 16 posts · 3 votes1y
@Bryan W. congrats on taking the first step into getting your first investment property. What strategy are you interested in learning more about? There are a dozen and a half strategies, but its all about finding the one that aligns with your goals and passion.
If you are interested in short-term rental investment space, I'd love to chat more and answer any questions you have. Hope to talk soon! - 1yBryan W.New to Real Estate · Trappe, PA · Member since 2025 · 7 posts · 7 votesOP
@Jordan Holmes thanks for reaching out. As a newbie it does feel like information overload right now! I see a lot of advice to rookies to consider turnkey or small rehabs as lower risk. I'm definitely open to short term rental investment.
- Real Estate Agent · Grimes, IA · Member since 2022 · 16 posts · 3 votes1y
Quote from @Bryan W.:
@Jordan Holmes thanks for reaching out. As a newbie it does feel like information overload right now! I see a lot of advice to rookies to consider turnkey or small rehabs as lower risk. I'm definitely open to short term rental investment.
@Bryan W. drinking from the firehose at first lol. I sent you a message. Would love to chat more and share what in know in the STR space.
- Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes1y
@Bryan W. for your first deal, just know that you are likely going to make some decisions that in the future, looking back, you probably would have made differently. This is ok, it's how most investors learn. If you want to minimize this cycle, link up with an experienced investor or company for your first investment and closely follow the steps they are doing and ask tons of questions.
We have all been in your shoes at some point, eventually you will need to do the real estate "trust fall" but you can mitigate your risk by not guessing. Here if you have questions or want to talk through processes to get started.
- 1yBryan W.New to Real Estate · Trappe, PA · Member since 2025 · 7 posts · 7 votesOP
Quote from @Jared Smith:
@Bryan W. for your first deal, just know that you are likely going to make some decisions that in the future, looking back, you probably would have made differently. This is ok, it's how most investors learn. If you want to minimize this cycle, link up with an experienced investor or company for your first investment and closely follow the steps they are doing and ask tons of questions.
We have all been in your shoes at some point, eventually you will need to do the real estate "trust fall" but you can mitigate your risk by not guessing. Here if you have questions or want to talk through processes to get started.
Thank you so much. The "trust fall" analogy is exactly where I'm at. This community has really been encouraging.
- Real Estate Agent · Lakeland, TN · Member since 2015 · 214 posts · 105 votes1y
Quote from @Bryan W.:
Quote from @Jared Smith:
@Bryan W. for your first deal, just know that you are likely going to make some decisions that in the future, looking back, you probably would have made differently. This is ok, it's how most investors learn. If you want to minimize this cycle, link up with an experienced investor or company for your first investment and closely follow the steps they are doing and ask tons of questions.
We have all been in your shoes at some point, eventually you will need to do the real estate "trust fall" but you can mitigate your risk by not guessing. Here if you have questions or want to talk through processes to get started.
Thank you so much. The "trust fall" analogy is exactly where I'm at. This community has really been encouraging.
Totally understand. Happy to help with any advice or service, let me know!
- 1yTodd AndersonPro MemberReal Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
Welcome to the BP community. This is a great place to get the information you need to make your first deal.
Making the first deal is normally the toughest for any investor. It's good to learn exactly what to be looking for, and then look at a number of deals to see if you can find it. Make sure you give yourself a realistic timeframe to look at deals. This means look and talk to people about specific REI deals for one to three months until you're comfortable with the deals you're seeing and how to do the underwriting on each.
At this point, you will have to push yourself to move. I talk with a number of investors through the years that get caught in the "analysis paralysis". They get to the point of looking at deals, but are always looking for the perfect one I have found over 30 years of investing. They rarely is a perfect one. There's always some peace that you have questions on. That is why all investing is a risk. As others have said, I would strongly recommend that you go with a lower risk strategy on your first deal. You don't need to hit a home run the first time at bat you just need a base hit.
Best of luck on your journey, please connect if I can help in anyway way
- 1yBryan W.New to Real Estate · Trappe, PA · Member since 2025 · 7 posts · 7 votesOP
Quote from @Todd Anderson:
Welcome to the BP community. This is a great place to get the information you need to make your first deal.
Making the first deal is normally the toughest for any investor. It's good to learn exactly what to be looking for, and then look at a number of deals to see if you can find it. Make sure you give yourself a realistic timeframe to look at deals. This means look and talk to people about specific REI deals for one to three months until you're comfortable with the deals you're seeing and how to do the underwriting on each.
At this point, you will have to push yourself to move. I talk with a number of investors through the years that get caught in the "analysis paralysis". They get to the point of looking at deals, but are always looking for the perfect one I have found over 30 years of investing. They rarely is a perfect one. There's always some peace that you have questions on. That is why all investing is a risk. As others have said, I would strongly recommend that you go with a lower risk strategy on your first deal. You don't need to hit a home run the first time at bat you just need a base hit.
Best of luck on your journey, please connect if I can help in anyway way
That's incredibly helpful advice. Thank you.
- Member since 2025 · 194 posts · 140 votes1y
Welcome to the group!
No matter what type of investing you're pursuing, two of the most crucial, and often overlooked, foundations are tax planning and asset protection. While it’s easy to get caught up in the excitement of finding and closing deals, building a solid framework in these areas is essential for long-term success and sustainability.
A proactive tax strategy allows you to take full advantage of deductions, use the most favorable tax structures, and keep more of your income. By planning ahead, you can reduce your overall tax liability and create more flexibility for future investments.
Just as important is protecting what you’re building. Real estate investments carry inherent risks, from lawsuits to creditor claims. Without the right legal structure, your personal and business assets could be vulnerable. A strong asset protection plan helps limit liability, safeguard your wealth, and strengthen your position in the event of legal challenges.
To approach both areas with confidence, surround yourself with a team of experienced professionals including a tax advisor well-versed in real estate and an asset protection attorney who understands your specific goals. Investing in the right guidance early on can prevent major issues later and give you peace of mind as your portfolio grows.
Wishing you continued success on your journey!
Disclaimer: This message is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No professional relationship is established through this communication. Please consult with qualified professionals regarding your individual situation.
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
@Bryan W.,
Hi and welcome to the BP community!
It’s great to have you here, and you’re already taking the right first step by reaching out and looking to connect with others. Finding a mentor or solid network early on can make a huge difference as you navigate your first investment.
If you're open to it, turnkey rental properties might be a great way to get started—especially if you're looking for something lower-risk with built-in property management and cash flow from day one. They can be a great option while you’re learning the ropes and figuring out what strategy fits you best.
Feel free to reach out if you have questions or want to talk through different markets or strategies.
Best of luck,Melissa
- 1yBryan W.New to Real Estate · Trappe, PA · Member since 2025 · 7 posts · 7 votesOP
Quote from @Melissa Justice:
@Bryan W.,
Hi and welcome to the BP community!
It’s great to have you here, and you’re already taking the right first step by reaching out and looking to connect with others. Finding a mentor or solid network early on can make a huge difference as you navigate your first investment.
If you're open to it, turnkey rental properties might be a great way to get started—especially if you're looking for something lower-risk with built-in property management and cash flow from day one. They can be a great option while you’re learning the ropes and figuring out what strategy fits you best.
Feel free to reach out if you have questions or want to talk through different markets or strategies.
Best of luck,Melissa
Thank you. While I'm open to turnkey because it's less work, I do want to take advantage of my handyman/carpenter skills if a low rehab opportunity comes along. I purchased a condo a little over 2 years ago ($231k) and did some upgrades to it while I lived in it. I sold it exactly 2 years later for $273k.
- 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Quote from @Bryan W.:
Quote from @Melissa Justice:
@Bryan W.,
Hi and welcome to the BP community!
It’s great to have you here, and you’re already taking the right first step by reaching out and looking to connect with others. Finding a mentor or solid network early on can make a huge difference as you navigate your first investment.
If you're open to it, turnkey rental properties might be a great way to get started—especially if you're looking for something lower-risk with built-in property management and cash flow from day one. They can be a great option while you’re learning the ropes and figuring out what strategy fits you best.
Feel free to reach out if you have questions or want to talk through different markets or strategies.
Best of luck,Melissa
Thank you. While I'm open to turnkey because it's less work, I do want to take advantage of my handyman/carpenter skills if a low rehab opportunity comes along. I purchased a condo a little over 2 years ago ($231k) and did some upgrades to it while I lived in it. I sold it exactly 2 years later for $273k.
That's awesome! And of course - just putting it out there as far as options go. Let me know if you have any specific questions and feel free to DM me. Always here to help!
- Lender · Miami, FL · Member since 2024 · 3 posts · 1 vote1y
My first advice would be to not analyze the numbers on a specific property alone. For example, my investors usually send me a property so I can run the numbers and full scenarios to make sure it makes sense. They are experienced and usually know what to look for, but it always helps to have an extra set of eyes. I'm happy to do the same for you, if you ever need it. I also recommend using a real estate attorney who is experienced in investments. I've seen nightmares saved because of a good attorney.
- Lender · Nationwide · Member since 2023 · 362 posts · 237 votes1y
Hi Bryan, I have a portfolio of 10 doors across Memphis, Detroit and 1 in Seattle. I'm always happy to connect and knowledge share if you are interested.
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Bryan W. here's some advice to bookmark and refer back to as you learn more and you can better understand it:)
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding City/Neighborhood to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
Logical Property Management4.9459 Reviews- 1yBryan W.New to Real Estate · Trappe, PA · Member since 2025 · 7 posts · 7 votesOP
Quote from @Drew Sygit:
@Bryan W. here's some advice to bookmark and refer back to as you learn more and you can better understand it:)
Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding City/Neighborhood to invest in.
Why is Property Class so important for investors to understand and apply in their investing strategies?
Because the Property Class dictates the Class of the tenant pool that the property will attract.
The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.
Both Property Class and Tenant Class affect what type of contractors, handymen and property management companies will work on a property.
If you buy & renovate a property in Class D area to Class A standards, what Tenant Class will rent it?
Or, if you put several Class D tenants in a Class A four-plex, what do you think will happen to the property?
So, if you fail to apply the correct assumptions to a property, your expectations won’t be met and it may even be a financial disaster.
We use the following to rank Property Classes, in order of importance:
- Property Tenant Pool: closely linked to location, but not always.
- Property Location: closely linked to tenant pool, but not always.
- Property Condition & Amenities: it’s important to, “Maintain to the Neighborhood.”
Key metrics for each Property Class:
Class A Properties:
Tenant Pool: Majority of FICO scores 680+, no convictions/evictions in last 7 years.
Tenant Default: 0-5% probability of eviction or early lease termination.
Section 8: Class A rents are too high and won’t be approved.
Vacancies: 5-10%, depending on market conditions.
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Class B Properties:
Tenant Pool: Majority of FICO scores 620-680, some blemishes, no convictions/evictions in last 5 years.
Tenant Default: 5-10% probability of eviction or early lease termination.
Vacancies: 10-15%, depending on market conditions.
Cashflow vs Appreciation: Typically, 1-3 years for positive cashflow, balanced amounts of relative rent & value appreciation.
Section 8: Class B rents are usually too high for the Section 8 program.Class C Properties:
Tenant Pool: Majority of FICO scores 560-620, many blemishes, but should have no convictions/evictions in last 3 years. Verifying recent 2-years of rental history very important! Same for 2-years of job/income stability.
Tenant Default: 10-20% probability of eviction or early lease termination.
Section 8: Class C rents usually meet program requirements, proper screening still recommended.
Vacancies: 10-20%, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.
Class D Properties:
Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months. Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.
Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.
Vacancies: 20%+, depending on market conditions and tenant screening.
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.
Where did we get our FICO credit score information from?
Check out this chart:
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Make sure you understand the Class of properties you are looking at and the corresponding results to expect.
Metro Detroit has 132 cities, the City of Detroit 183 Neighborhoods, which we’re analyzing and classifying. Check out the map on our website where we’ve made this all easy to follow.
We can also share numerous examples of properties & portfolios we’ve assisted investors with!
DM us if you’d like to discuss this logical approach in greater detail!
This is very helpful information. Thank you for sharing it.
- Specialist · MI · Member since 2024 · 49 posts · 11 votes1y
Welcome, Bryan!
Join the conversationCreate a free account to reply, vote on answers and follow this thread.