If you’re going to be buying properties, the first thing that you need to know is KNOW THE VALUES OF YOUR FARM AREA. And the only way that you’ll do that is to actually good and look at 100 (yes one hundred) properties that are for sale in your farm area inside and out.
Now, you can try to do this solely thru an agent, but if you do, be very prepared for some fine language teachings from the agents after they’ve shown you 10+ houses and you’ve not made a single offer. They’ll especially be happy to give you the advanced course when you tell them you were “just looking.”
The point here is to not burn any bridges by trying to work thru one agent. You’re not ready for that yet. Get into the properties by calling listing agents, FSBO’s, searching the paper for prices. Learn the market!
Also, by market, since you are planning on being a landlord, you have to learn the rental market. What can this rent for? What can that rent for? How much more rent can I get for a 3 bed vs. a 2 bed unit? What kind of discount much I buy at so that I can have true positive cashflow? What is the “true positive cashflow” (what’s your true costs)?
The rental market is usually a bit different from the retail market. You can’t simply assume that a 3 bed will be better than a 2 bed, especially for a rental. Learn the market, then make an informed decision when it’s time to buy.
Raj is 100% on target with his post. I wholeheartedly agree with looking at 100 houses in your market. You must KNOW your market. I suggest starting today. It will take a little time to look at 100 houses, so you might as well get started!
My other suggestion would be to understand the math about rentals. Most Realtors know absolutely nothing about rentals. If you ask one of them to help you find a rental, they will find you a house at retail price. You can not buy retail and rent at a profit.
Join your local REIA asap and find out who the successful landlords are. I would look for landlords who have a LOT of rentals and have had them for many years. These people know the reality of being a landlord, which is quite different than the guru nonsense. Make friends with these people and hang around with them.
Seems that I have a lot of work to do! I’m getting started TODAY. Thanks for everything up to this point. I have to go get started looking at 100 properties. I will keep you updated on the progress.
Hi everyone!! I often hear that you can’t just get out there on your own. What do they mean by that? I’m really terrified to make that first leap b/c I have bad credit and some other hindering factors. Can someone help me? There are so many options out there as far as no money down deals and that seems best to suit my needs . I just want to get out there and help people at the same time help myself. What’s first? I’m continuosly reading and trying to become more eductated in the market. I just need guidance.