After finding a good rental property and purchasing it what are the basic steps to getting it ready for rent (inspections, approvals, etc...). Also what type of loan would you need to take to like in a property for about a year then rent it out. Property would be a single family home.
Something I like to do is checkout my competition on craigslist or other rental sites. If my house looks very outdated it isn't going to fetch the same rents as a recently renovated house.
Living in it for a year or two will give you a good idea of things the house might need. I know it did for me. Don't count on an inspection finding every little thing that is wrong with it. It sure didn't for me and my guy was very thorough. It's a house and things do break. Make sure to have extra money set aside after you buy it to fix things that may break and they will break. Unless it's a brand new house I highly suggest having an extra 5-10k to fix things that break. My first 3 months I had the garage springs break($400), vent hood smoked(200), sump pump (600). The following year it was roof, shed, water softener, water heater.
Type of loan will really depend on credit, DTI and how much you can put down. I was able to put 5% down on mine and almost had to do FHA because my DTI was too high. However paying off my car early reduced my DTI enough to qualify. I suggest you get pre approved and talk through with someone to see your options.
I like to use "hard surfaces" in my properties. Examples of these are tile and LVT flooring, granite and marble countertops, and a good paint that has a tinge of color to it so it doesn't show every little mark and will be easy to touchup between tenants.
As far as your loan, are you thinking of short term type loan or long term? The beginning of a BRRRR process situation?
@Brian Corbett I would like to do long term. After purchasing 1 single family home I'd like to manage it for a year or so to learn through e experiance then buy a second. Each house or multi plex I would hold on to for long term rent. What his your success been using BRRRR and long term?
I have done a couple of BRRRR properties over the last couple of years and will be expanding my portfolio through this method moving forward. I currently use hard-money to make the purchase and perform the rehab, then use a small local bank to refinance the hard money loan after I have completed and rented the property. It took me a little bit to find the right hard-money partners but now that I have I can scale this business quickly.