Single-family investments, how to start?

Question

Kristi Harmon · Answer

I think the easiest way to start is to find a house that you could move into for a year. During that time you fix it up and then you rent it. You will get lower interest rate and your downpayment will be 3.5-5%.

1. Save some money--have around $15000 in savings

2. Find a lender and get pre-approved

3. Get an agent or you can buy houses on homie or redfin using their agents.

4. Start looking for houses. I would look for something that you can add value to (by updating flooring, kitchen, bathrooms, new paint, add an extra bathroom or bedroom etc.). However, I would make sure it is habitable, so you could move into it.

5. Make sure the numbers make sense and you would actually make some money when you start renting it.

5. Put in offers. Your agent can be very helpful telling you what the house is actually worth in current condition and what the ARV would be. Be fast with your offers--good deals come on the market on one day and they will probably be under contract the next day.

P.S. If you can afford 20% down, you can get an investment property and then you don't have to move into it, plus by putting that much down, your monthly mortgage payments will be much lower. However, if it needs repairs, you have to be fast so you are not paying two mortgages at the same time.

I'm in a process right now trying to find another house to buy in Utah County and in Washington County. I have been putting in a lot of offers, but so far we have been overbid or the sellers have taken all cash offers. Tomorrow I will find out if I will get a foreclosed property or if I have to keep looking. It takes a lot of work to find a house here in Utah, but it is exciting at the same time as well.

Good luck!

Corby Goade · Answer

This is way too broad of a question. What are you trying to do? Flip? Wholesale? Buy and hold? What is your cash position? What are your long and short term goals as an investor? Break these things down and ask questions to help you get to the point where you can recognize a good deal when it pops up. Good luck!

Douglas Larson · Answer

The questions you have are already answered here on BP. In fact, the questions you don't even know to ask are already answered a hundred times over.

Read the forums. Listen to at least 20 podcasts and buy a good book or 2. We all started somewhere, and searching for the answers through study is truly the best way to begin. In a couple weeks you will know so much more and be ready to engage and network with agents, lenders and other investors.

Have fun . . . and make your own luck!

Lane Facer · Answer

Have you found a money source to do this? If so find a property that fits the numbers. The hardest part is buying the 1st property.

Single-family investments, how to start?

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