Things you would have liked to know when starting with rentals?

Things you would have liked to know when starting with rentals?

Electrician · Oakland, CA · Member since 2018 · 36 posts · 16 votes

Hello to the bigger pockets community I have heard so much about! This is my first post on BP and I'd like to start off by asking the general question of, If there was something you would have liked to know about real estate rentals when starting off what would that be? Would like to learn anything from anyone here on the BP forums.

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Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
8y

Don't get stuck with analysis paralysis. Do your due diligence and then trust your numbers and pull the trigger.

Get out of education mode and get into investment mode as soon as you can.

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  • Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
    8y

    Don't get stuck with analysis paralysis. Do your due diligence and then trust your numbers and pull the trigger.

    Get out of education mode and get into investment mode as soon as you can.

  • Investor · Longview, WA · Member since 2015 · 94 posts · 176 votes
    8y
    Know what type of person you are. Some people make good landlords, some don't, identity that. Don't be afraid to use property management just for the sake of saving the 10%. You can lose a lot more by not using them.
  • Electrician · Oakland, CA · Member since 2018 · 36 posts · 16 votes
    8y

    Thanks for the advice, currently networking to build a out of state team. In my position a property manager is a must and am very excited to be in the process of hunting down a good deal for my first rental property 

  • Burnaby, BC · Member since 2017 · 282 posts · 268 votes
    8y

    The biggest tip I can think of : make sure you find a realtor who specializes in working with investors, typically they will have investment properties of their own. They can help lighten the workload on finding an ideal property if you give them your investment criteria and they are more knowledgeable about good rental locations & going rates. 

    The typical realtor is more experienced with retail buyers who are looking for homes to live in and will know good locations to buy or a good price on a property, however won't know as much about rental rates, vacancy rates, etc. which is critical when you are running your ROI analysis of potential investment properties.

    An investment experienced realtor can also help present their own rough ROI calculations for different properties they show you, but I still recommend you do that piece on your own to verify

  • Investor · Pacific City, OR · Member since 2016 · 174 posts · 123 votes
    8y

    To piggy back off of  @James Ma, build a network of realtor(s), plumber(s), contractor(s), electrician(s) and a CPA.

    @Antoine Martel 's advice about avoiding analysis paralysis is important too.  You have to run numbers and then jump in or run away.

    Also realize that you never stop learning.  A lot of learning is from reading sites like this and other landlord sites.  

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    8y

    I wish I would have known more about creative finance and leverage, I would have started out much more quickly and aggressively.

  • Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes
    8y

    Welcome to BP @Emanuel Vega! When I was starting out, I would have loved to know that I don't need any cash or credit to make it happen. Best of luck to you in your REI journey!

  • Electrician · Oakland, CA · Member since 2018 · 36 posts · 16 votes
    8y

    Very interesting and great advice @Corby Goade @Matt Motil , this is one issue I am currently seeking a solution to is funding! I would like to be more aggressive with creative finance and am wondering what are some solutions to this? I have found a great fixer upper that I believe will cash flow well but, do lenders frown upon adding the cost of repairs to a mortgage loan? Or do I just have to find a investor friendly lender? Thank you again to everyone 

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    8y

    Hey Emmanuel,  shoot me a PM and I'll give you some pointers!

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