How to buy first rental property

Question

Can anyone help me find different ways to successfully buy your first rental property

Wale Lawal · Answer

@Isaiah Murray

Investing in your first rental in Albany, NY can be a smart move if you use the right strategy. Best low-down-payment option is an FHA loan (3.5% down) if you're open to house hacking a duplex, triplex, or fourplex—live in one unit and rent the others to offset your mortgage. If you're buying a single-family rental, expect to put 15-20% down with a conventional loan. Look into high-demand rental areas like Pine Hills (near colleges) or Delaware Avenue (affordable multifamilies) and consider the BRRRR strategy if you're open to rehabbing properties. Also, check out SONYMA loans and Albany’s down payment assistance programs to lower your costs.

Good luck!

Chris Chisholm · Answer

Would need a ton of actual information about your situation to give you a proper response, but a great way to start is to house hack a place.  Find a place when a ton of space you won't use and rent it out.  Live in one room (share the kitchen/living room/bathrooms, etc), Rent out the garage, parking spaces, rent out the basement or each extra room.  This will generate a pile of extra income that you can utilize for the next one.  Piles of other routes to go like looking for partners or investors to help get your feet wet, flip a house to get some quick cash if you have the skill set, etc.

Carini Rochester · Answer

Read a couple of books. Put together your plan. Analyze your plan. Post about six or eight points from your plan. Include in your post what you think makes your plan a good one and what its weaknesses are. This will give us something to comment on and provide you with some help.

Emran Chowdhury · Answer

My first question which are the ways you are considering?

It all depends on how much cash do you have, what is your credit score, did you get preapproval, will you do house hack, will you buy fixer upper?

if you are not sure what is your options are at the first place, getting all the answers won't help you.

Jaron Walling · Answer

@Isaiah Murray Like mentioned above you have to do the due diligence and study the market. You have to learn the numbers and start analyzing opportunities. You need to ask yourself "why" real estate investing?

You can find valuable information in books, podcasts, and these forums. Do all of it. Without the basic education, financing, and key relationships REI is risky.

Depending on your experience, strategy, and risk tolerance it could take 6-12 months to buy your first property. Narrow the funnel because REI is vast. Learn to say no and focus on your goals. Don't let other people discourage you!

Mackaylee Beach · Answer

Have you chosen a location yet? Are you open to investing outside of your state?

Jared Smith · Answer

@Isaiah Murray you are going to likely get many different answers here and the one I'll start with is... it depends. It depends on various aspects like how involved you want to be, how much time do you have, do you want to do renovations and select tenants yourself or are you happy to turn all of this over to a company that does all of this for their livelihood and just grow a portfolio with them?

Do you have any specific parameters or guidelines you can share to start? Any specific goals?

How to buy first rental property

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