New to BP and REI in general... Art director for a tech startup by day but am looking to get started in REI by transitioning my current property into a rental. Any tips or suggestions on how to get started and what to keep in mind?
Thanks for the help!
Research current rentals to make sure you get a good rental rate.
Make sure you let your insurance company know when your current residence becomes a rental so they can insure properly.
Join a local rei group for networking and resources. You will want a decent lease agreement to protect yourself.
Good luck, this is a great gig!
Welcome to BP @Jordan Hamm .. There's ton's of information to your question. Few off the top of my head would be to find the market rental value for your home. Make sure to pre-screen (background check, credit check, employment verification, etc..) your applicants thoroughly and not rush to get any tenant in. Will save you a lot of headaches down the line by doing so.
Thanks for the prompt replies Account Closed!
Good news is a model exactly like mine (and with finishes that aren't as nice) just rented for $900 more than my PITI... not too shabby right? The only thing holding me back is trying to figure out lending for my next property—I probably wouldn't have enough for a conventional mortgage on a second property. So it may have to wait a couple years as we save up a bit more.
Good tip on insurance... any ideas on how to get connected with a local REI group? Some groups on here maybe?
Welcome to the vibrant BP community. Your time here will be well spent.
Since your interest lies in rentals, I added the below links for your review.
http://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (house rental guide)
https://www.biggerpockets.com/renewsblog/2013/01/27/tenant-screening/ (Landlord/tenant screening)
https://www.biggerpockets.com/renewsblog/2013/01/04/how-to-rent-your-house/ (how to rent your house)
https://www.biggerpockets.com/rei/pay-rent-online-payment-tools/ (Online rent payment)
http://www.biggerpockets.com/renewsblog/2012/12/09/how-to-be-a-landlord/ (How to be a landlord)
https://www.fanniemae.com/content/tool/landlord-guidance.pdf (Fannie Mae landlord guidance)
Now that you have made the move, below are some links that will help with the navigation of the site.
- How to Use @Mentions on BiggerPockets
https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)
Before your 1st purchase, please ensure you visit the below link for some tips.
REI books suggested by BPers
https://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REIs)
Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.
Feast on the Podcasts, #askbp Podcasts, blogs and webinars
Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational, thought provoking ideas relevant to REI.
You're off to a good start if it covers your expenses @Jordan Hamm . Just make sure after your PITI that you still have money to set aside for future CapEx, Repairs and Vacancy.
Regards to your future investment, it will help to talk with an experienced lender who deals on the investment side. I personally invest out in Columbus, OH myself and my loan guy is actually out there too. Let me know if you'd like his contact info. He can do loans low as $10,000 without charging bunch of junk fee's and hiking up the rates b/c of the lower amount.
Thanks @Linval T. , I've checked out a few of them, but definitely have a lot more reading to do!
Great advice @Christopher Suh ... I'll be sure to double check those numbers. As for your lender, I'd love to at least connect with him and pick his brain. Would you mind messaging me with his contact info?
Thanks for your help!
Welcome to BP @Jordan Hamm ! It's so good to see more people from Ohio on here. Best of luck to you, Kathleen
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you