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

Question

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.

Antoine Martel · Answer

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.

Matt Motil · Answer

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!

Corby Goade · Answer

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

James Ma · Answer

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

Corby Goade · Answer

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

Emanuel Vega · Answer

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

Sean Lambert · Answer

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.

Emanuel Vega · Answer

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

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

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