As the title says, I have found some properties that look to work in terms of cashflow and rate of return but I've never actually purchased a property before. The math works out online and tenants already live in these buildings so I know they are liveable; that said, I have not visited the homes or made contact with the sellers.
How do I go about starting the process of buying a property?
How do I get pre-qualified for a mortgage?
How do I get official approval for a mortgage? (Can I use the estimated cash flow of the house as proof of income for mortgage applications?)
One property said they would consider seller-financing to a buyer, do I contact the seller and ask?
It's probably best idea to first do research into the property by asking the seller/agent questions - about the condition, area, property, etc. In terms of buying, you would need to make an offer. Sometimes you need pre-approvals in order to make offers in which case you'd need the pre-approval first. Contact a lender and get pre-approved from them. They would most likely use your liquid assets (cash, stocks, retirement account) to qualify to make sure you have enough for downpayment + closing costs.
1. Talk to a local lender to know what you can afford.
2.Research how to do real estate transactions, get a good RE lawyer or find a good investment knowledgeable agent. (every agent is friendly). Ask the lender and the local title company for recommendations on agents working with investors. Look at comps in the area and walk the neighborhoods at various times of the day and week.
3. Then you can approach the seller or have your agent contact the sellers. You can use the lawyer draw-up seller financing contract if needed.