I am in the process of searching for my first property, specifically a residential MFR that I am looking to buy and hold. I have reached out to a real estate agent and she has provided me with a list of active MF properties on the MLS in my target market. I found a quadplex that I am particularly interested in. I am now analyzing this deal using, 1 of my 5 free, BP Rental Calculator. Upon my first attempt, even if I purchased at asking, the numbers are in a good spot.
My question for the group is a theoretical one: what's next? Let's say I get the numbers to a point I like, and I am ready to make an offer. Should I go to the bank and get pre-approved first? Should I contact a general contractor to help me walk to property if I schedule a house viewing? I know I need to be able to react fast, so I want to optimize my next steps.
I've read an extensive amount on "how to get that first property" but they all had different input, so I'd love to hear some from you guys on how you'd go about it as a first timer.
Thanks in advance!
Hi @Brandon Jurczyszyn ,
- Talk to a lender/mortgage broker, my favorite being @Kim Burke . They will help you determine how much you can borrow and how you should structure the deal, financially.
- Once you know your price range, look at properties within that range.
- Once you find a property that you want, submit an offer. The goal here is to get it under contract and make it a "live deal"
- Once the offer is accepted, you are now in the "Due Diligence" phase. This is when you have a formal inspection and have contractors submit bids on your desired repairs/renovations.
- If the amount of work is manageable and the deal is still good, you then proceed to Closing.
If you go out of order, you waste your time (and other's) by getting them involved too early. E.g. having a contractor look at the roof when someone else could submit an offer and get it accepted before you do.
Thanks for the response @Nathan Platter !
I think it sounds like my next step will be getting touch with a mortgage broker (probably should of been my first). I am leaning towards getting an FHA loan for this, as I want to house-hack.
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