Long Term Rental - First time

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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 521 votes
17h

Some items that can help build your success: Analyzing properties and learning more about your market are important as far as properties that are for sale and also what realistic rents are. Finding a real estate agent you can work with who understands the BRRRR process and regularly works with investors. Finding a mortgage professional who specializes in working with investors and helping to secure business purpose financing such as hard money and DSCR loans. An experienced mortgage broker who specializes in investment property financing can help as they will have connections with lenders that don't advertise directly to the public so more investor specific options will be given with more investor friendly terms regarding borrower credit, LTV, etc.

For hard money loans, learning about the rehab process and finding a general contractor (GC) you can work with depending on the type of rehab you are doing

Once the rehab is completed, DSCR loans are calculated on the actual or market rents if the property is habitable. The appraiser marks the appraisal form box "as is" in that there's no more rehab work required to make it habitable, not the box "subject to" more rehab work being completed for the loan to close. After the rehab is complete, many investors will use DSCR loans to refinance as they can pull their cash back out on the new appraised value more quickly. That way they are getting credit on the value after the rehab is done and able to get their cash back more quickly for new projects. The investor doesn't have to wait a year which is what a conventional loan currently requires to use the new appraised value.

Most new investors doing a BRRRR realize there is a lot to learn and doing a light cosmetic rehab can help to add value while not taking on too much for your first couple projects. Generally the rehab process takes longer and can be more expensive than what is initially budgeted for- this is especially true if it's a more complicated and in depth rehab project. Happy to connect to discuss further.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1d

    Welcome! I would start analyzing. Whether that's having an agent forward you deals or get on wholesaler lists. Also start getting connected with GC's. Interviews\ different ones. I would also get familiar with the areas and narrow down where you are looking. From there run numbers and make offers.

    1Reply
  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 521 votes
    17h

    Some items that can help build your success: Analyzing properties and learning more about your market are important as far as properties that are for sale and also what realistic rents are. Finding a real estate agent you can work with who understands the BRRRR process and regularly works with investors. Finding a mortgage professional who specializes in working with investors and helping to secure business purpose financing such as hard money and DSCR loans. An experienced mortgage broker who specializes in investment property financing can help as they will have connections with lenders that don't advertise directly to the public so more investor specific options will be given with more investor friendly terms regarding borrower credit, LTV, etc.

    For hard money loans, learning about the rehab process and finding a general contractor (GC) you can work with depending on the type of rehab you are doing

    Once the rehab is completed, DSCR loans are calculated on the actual or market rents if the property is habitable. The appraiser marks the appraisal form box "as is" in that there's no more rehab work required to make it habitable, not the box "subject to" more rehab work being completed for the loan to close. After the rehab is complete, many investors will use DSCR loans to refinance as they can pull their cash back out on the new appraised value more quickly. That way they are getting credit on the value after the rehab is done and able to get their cash back more quickly for new projects. The investor doesn't have to wait a year which is what a conventional loan currently requires to use the new appraised value.

    Most new investors doing a BRRRR realize there is a lot to learn and doing a light cosmetic rehab can help to add value while not taking on too much for your first couple projects. Generally the rehab process takes longer and can be more expensive than what is initially budgeted for- this is especially true if it's a more complicated and in depth rehab project. Happy to connect to discuss further.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    2Reply
    • Adamma Jean-Pierre Eze
      OP
      New to Real Estate · Atlanta, GA · Member since 2026 · 16 posts · 5 votes
      16h

      Stacy, this is great. Thank you! Just connected, will send a message shortly

      1Reply
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 876 posts · 615 votes
    16h

    You start with a buy box, not a team.

    I buy BRRRR single-family in Memphis under $100K, looking for ARV $180K-$265K. The first screen is rent: if the rent does not hit the 1% rule against your all-in cost, pass and keep looking. For a 3BR+, Section 8 rents in my market run $1,395-$1,950, and that rent has to carry the deal after the rehab and the refinance, not before.

    Second, plan the refinance before you buy. I refinance DSCR at 70-80% LTV, so I only buy what the rent can carry at that loan.

    Atlanta will have its own numbers, but the order does not change: price, rent, refi. Get those three right on paper first, then build the team around the deals that pass.

    1Reply
  • Hersh ShahBusiness Member
    Realtor · Atlanta, GA · Member since 2016 · 126 posts · 82 votes
    15h

    @Adamma Jean-Pierre Eze Consider starting with the end in mind.

    • Why do you want this long‑term rental?

    • How long do you plan to own it?

    • How much capital are you starting with?

    If you prefer lower down‑payment options to acquire more properties quickly, moving in and house‑hacking could work, but the properties won’t cash‑flow because you’re investing less money in the down payment.

    Answers to these questions will guide what you buy and where you buy. Your goals will determine which part of Metro Atlanta best fits your investment strategy.

    Hersh Shah Group4.9113 Reviews
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    • Adamma Jean-Pierre Eze
      OP
      New to Real Estate · Atlanta, GA · Member since 2026 · 16 posts · 5 votes
      14h

      GM @Hersh Shah thank you for the reply. Answers to your questions:

      • Why do you want this long‑term rental?

        • Consistent monthly cash flow, currently working in an industry I didn't go to school for, want to switch full time into REI and feel like this is a good start. Looking for a multi family property 2+ units, live in one.

      • How long do you plan to own it?

        • If in a great and growing market, for a while. 10+ years

      • How much capital are you starting with?

        • $0

      Looking for a lower down payment, I am a first time home buyer, and would live in one unit.
      Would love to connect further!

      1Reply
  • John RacinePro Member
    Rental Property Investor · Casselberry, FL · Member since 2008 · 99 posts · 56 votes
    13h

    Welcome, Adamma! I think the most important thing is to start.

    Start looking at properties. Start underwriting deals, even ones you have no intention of buying. Every deal you run makes the next one faster, and before long you'll know what a good one looks like in your area. Start talking to real estate investors, in Atlanta and here on BiggerPockets. Most of us are happy to share what we learned the hard way.

    My first purchase was two duplexes in a less-than-desirable part of Orlando. It wasn't perfect, but it taught me lessons I still use on every deal today. You don't need to have it all figured out before you take the first step. You figure most of it out by taking it.

    So just start. What's one thing you can do this week: run numbers on a few listings, go to a local meetup, or reach out to an investor in your area?

    1Reply
    • Adamma Jean-Pierre Eze
      OP
      New to Real Estate · Atlanta, GA · Member since 2026 · 16 posts · 5 votes
      12h

      @John Racine Thank you! Great advice I will be taking moving forward. Just start.

      1Reply
    • John RacinePro Member
      Rental Property Investor · Casselberry, FL · Member since 2008 · 99 posts · 56 votes
      11h

      I ❤️ that

      0Reply
  • Ryan BrownPro Member
    Real Estate Agent · Louisville, KY · Member since 2022 · 54 posts · 11 votes
    13h

    @Adamma Jean-Pierre Eze, welcome. You've already gotten a lot of good advice here. What I'd add is that there isn't one right way to start. So many strategies work, and the one that fits you depends on your goals and how hands-on you want to be.

    Some people want to buy something turnkey, rent it out and keep it as passive as possible. Others want to buy something that needs work, fix it up, rent it and refinance to pull their money back out. Neither one is better. They just fit different people. Be honest with yourself about how much time you have, whether you want to manage contractors, and how much risk you're comfortable with on the first deal.

    From your answers to Hersh, house hacking a 2+ unit with owner-occupied financing makes a lot of sense. As a first-time buyer, you can get in with a much smaller down payment than an investment loan, and it's worth asking a local lender about first-time buyer down payment assistance programs in Georgia. But if you're starting without much cash, I'd be careful about what you buy. I'd look mostly at newer builds, or properties where the big-ticket items like the roof, HVAC, water heater and plumbing are already updated. Rentals are great for long-term wealth, but they can get expensive in the short term. One surprise repair or a couple of months of vacancy can wipe out a year of cash flow. Without a large reserve to fall back on, your first goal should be reducing risk, not finding the biggest upside. Save the fixer-uppers for later, once you have more cash behind you.

    Once you know which path fits you, the rest gets easier. You'll know what to look for, what numbers to run, and who to put on your team. Good luck.

    [email protected]502-889-0122
    2Reply
  • James Loffredo
    Lender · Dallas, TX · Member since 2024 · 18 posts · 7 votes
    12h

    Hello Adamma!

    Very exciting and I promise that the first one is the scariest but you are in good hands with all the knowledge on here. I would say building out your team is the most important. Agent, potential wholesaler, lender, title, property management. Having a good team is what matters most.

    Second, I would find a tool like on here or we have a couple (side note - I founded a lending firm built for rentals) where you can run the numbers and see what works. Knowing the numbers ahead of time is so important in my opinion especially on the first deal.

    Wishing you the best of luck and following along!

    1Reply
  • Dan Duenas
    Lender · Irvine, Orange County · Member since 2026 · 54 posts · 28 votes
    12h

    Adamma, the honest starting point is the money part, because it decides everything else.

    With $0 capital, you're not ready to buy yet — and anyone who tells you otherwise is selling you something. Even the lowest-down-payment routes still need a down payment, closing costs, and reserves for the first repair. A house hack — buying a 2–4 unit, living in one unit, renting the others — is the right idea for a first-timer, but it's a primary-residence loan, which is a different lane from investor loans. Investor loans like DSCR top out around 85% of value, so 15% down is the floor there, and they don't work on a $0-down plan at all.

    So the sequence that actually works:

    1. Save the down payment plus a repair reserve first. That's the gate — everything else is just planning until that's real.

    2. Build the buy box before you shop: Atlanta neighborhoods, 2–4 units, price range, and the rent each unit needs to carry the payment. Only buy what the rent can carry — a house hack that doesn't cash-flow with you living in it rarely cash-flows later.

    3. Then talk to a mortgage professional about the primary-residence options for a first-time buyer in Georgia. I'm licensed for primary-residence loans in Nevada only; outside Nevada, primary-residence deals go to my manager Paulo, who is licensed in 49 states. Happy to point you the right way when you're ready.

    The 10+ year hold mindset is exactly right — just don't rush the first one before the money is there. A good first deal bought right beats a rushed first deal bought broke — Dan

    1Reply
    • Adamma Jean-Pierre Eze
      OP
      New to Real Estate · Atlanta, GA · Member since 2026 · 16 posts · 5 votes
      12h

      @Dan Duenas I appreciate the honesty, you went even further to break it all down which is extremely helpful. Thank you! Would love to connect further

      0Reply
  • Jaylin Warner
    Fort Worth, Tarrant County · Member since 2026 · 13 posts · 10 votes
    12h

    im a new investor too i would look into house hacking , its how i started.

    1Reply
    • Jim SternBusiness Member
      Real Estate Agent · ATLANTA Metro and Surrounding Counties · Member since 2025 · 31 posts · 12 votes
      9h

      Absolutely...it's a tremendous strategy and you can make it work LTR/MTR/STR and Co-living!

      678-369-3793
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  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 244 posts · 91 votes
    5h

    For your first rental, I'd start by figuring out your budget, financing options, and target cash flow before searching for properties. That'll help you narrow down which deals actually make sense.

    Are you planning to finance your first purchase or buy with cash?

    0Reply
  • Oluwatobi Franklin
    Real Estate Consultant · Lagos, Nigeria · Member since 2026 · 8 posts · 0 votes
    3h

    Welcome to real estate investing, Adamma!

    Starting with a long-term rental sounds like an interesting goal. One thing worth considering early is having a clear plan for evaluating properties, tracking expenses, and managing potential opportunities.

    I'm curious, are you planning to manage the property yourself or work with a property manager?

    Wishing you success with your first investment!

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 581 posts · 242 votes
    2h

    Welcome, @Adamma Jean-Pierre Eze ! I'd start with your money: check your credit, figure out how much cash you have for the down payment and reserves, and talk to a lender early, since investor loans usually need more down.

    Then focus on the area. Atlanta changes a lot block by block, so talk to local property managers about real rents and tenant demand before you pick a spot.

    When you run the numbers, count taxes, insurance, vacancy, repairs, and management, and pass on anything that only works in a perfect scenario.

    For a first deal, a simple single-family in a stable area is a good choice. Get a local investor-friendly agent and a good inspector, and add a sewer scope if the home is older.

    It's also worth learning Georgia's landlord-tenant rules before you buy. That's just my take, so double-check the details with a local pro. Good luck!

    [email protected]
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