Looking to get started

2 Replies

How do I find where people want to live? Do I ask an agent? High income neighborhoods are one thing. Should I be looking at middle income neighborhoods? Do agents generally know if people are looking for buying or renting? I’m new and want to get started. Is it too late in the year for finding renters or buyers?

Ask the property management company that you are planning to work with about the investment that you have in mind. Ask if they will be able to rent it out and how much they will charge in rent. In my experience, agents don't really know anything about the rental market. I bought a property at a bargain price in February through an agent. The agent told me:"The max rent that you will be able to get is $750 Dollars per month if you pay for utilities." She was a real estate agent of 20 years and claimed to have deep knowledge of the market. At this point I knew that I was able to take advantage of her lack of market knowledge.

Man was she wrong. I had this baby rented out at $1000 per month, tenant pays all utilities within 3 days. My contractor only painted the interior. Even better, the property appraised almost 30k above what I paid within 4 weeks!

The best way to learn is to buy one property and go from there. You will learn SO MUCH from your first deal. Also, It's not too late in the year to find renters. It will start to slow down in November and it's very hard to find renters in December.

Great question @Frank Yaccarino and thanks for that advice @Michael B. Asking a property management company seems like the right path to go in speaking with an expert in that area on rental rates. Michael after this example you listed do you now ask property managers in new areas you are looking to invest, do you do your own research or both?

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