First Investment Tips/FYI
Hello all,
Soon to be first time investor here touring properties and looking to get into a rental soon. I'm looking for some tips/things to note when first buying a rental property, such as closing cost estimations/other fees, process of applying for a loan, when to apply for a loan (make the offer then get the loan?), things to add into calculations (i.e. duplex you cover sewer/water vs. single-family is on tenant, any other considerations?), things to look for in a medium term (2-5yr) rental (no carpet lol, furnace, roof, and windows all intact), typical grading of neighborhoods you want to invest in. Anything and everything, all information is welcome. I am open to renting duplexes or single family properties and qualify for a FHA loan, so plenty of things are in play. Thanks!
Most Popular Reply
You're close—lock a buy box and prep your financing, then move fast on offers. Get preapproved first, then shop; most financed closes run roughly 30–45 days. In your analyzer, include PITI, PM fees, maintenance, vacancy, utilities you'll cover, and realistic taxes/insurance with reassessment risk. Verify rents with two sources plus a quick call to a local PM, and stress‑test at lower rent and higher expenses. On tours, focus on capex: roof, HVAC, electrical, plumbing, foundation, sewer scope, and any unpermitted work. Duplexes: confirm separate meters and who pays what; single family: push tenant‑paid utilities. Aim for solid C to B neighborhoods near jobs, not on busy roads. Next step today: write a one‑page buy box and call two lenders and two PMs to validate numbers.