First Investment Tips/FYI

[Tyler Ligan]

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!

[Allie McAlister]

Hey Tyler, 

Congrats on getting ready for your first investment — that's exciting! A lot of new investors start by focusing on the numbers (NOI, cash flow, etc.), but don't forget to factor in tenant demand and local landlord laws as those can make a big difference to your long-term success.

If you’re open to exploring different markets, Memphis has been really strong lately for newer investors — lower entry prices, solid rent-to-price ratios, and consistent demand for long term rentals. I work with a ton of first-time buyers here who use that to get their footing before scaling.

Happy to share a sample property if that helps. Best of luck!