Hi! I’m new at the whole real estate business, but I know I have a good nose for potential great deals. I’m want to know how to get started on purchasing properties to eventually rent out to generate regular cash flow. There is a list of properties that I would like to purchase, but the majority of them my city owns them. I know this may sound like a stupid question but I’m new at this and I just wanted to know can you purchase property from the city? If so, how do you go about doing it? Especially if you want to purchase a whole block, but not all of it is vacant how to purchase the properties from both the city and individual owners?
How to go about purchasing a property to rehab and rent from the my city?
I would suggest calling a city official to determine if they are willing to sell the property. In my area, I would call a city council member.
Usually, property being sold by a city will be auctioned or otherwise opened up for bids. However, that is not always the case. One guy in my REIA bought a run-down house from the city for $300.
So, just like everything else in real estate, you need to talk to people. Talk to your city officials. Talk to the private owners involved. Talk. Talk. Talk (in-person as much as possible).
What city do you live in?
How much money do you have on hand to . . .
Buy the Property (Including Pre-paids and all closing cost)
Amount of money to spend on the Rehab (Including all Holding Cost)
Hours per week to do the Job OR are you paying contractors?
Most important what is your Exit strategy in detail, this MUST be in place
before you buy the property and start the work.
I personally do not have any money, but I do have two investors willing to go in with me.
In terms of rehabing the properties, I don’t know yet how long or how much it will cost to rehab, because most of them are boarded up. I intend to purchase, flip, then rent. If for some reason things go south, I would sell the property outright to another investor. There are already other investors in the area, so getting these properties i’m certain will be a challenge. I live in the city of Philadelphia. I’m certain you can see some faults in my process, like I said i’m new, any suggestions and criticizms will be greatly appreciated. I really believe I can generate some good cash flow with any of the properties that I’m interested in, just need help getting started.