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MenuWhere can I get advice on making my very first rental property investment?
There's so much out there from people that have portfolios of 10, 20, 100, 200 properties and are doing this for a career. What about the girl or guy who has the money to do 1 single-family residential, with the hopes of having a few assets in the next 5 years adding to his wealth?
I'm looking to skip the fluff marketing and get straight to the good educational material.
Answers
I recommend you checkout the following site:
https://www.biggerpockets.com
They also have a great podcast.
I recommend that you look at your return. Take your Annual rent less taxes, insurance, and maintenance costs. This should be 10% or more of your purchase price. After deducting your annual loan payments (less taxes & insurance), divide this cash flow by the down payment if you borrowed $. You should have a 20% Cash on Cash return. Visit https://www.entrepreneursreport.com/master_real_estate_financials/ for more details and an online calculator.
Hello! I think I can help you tremendously! I only own a couple rental properties, but specialize in people buying and beginning their first rental properties. Here are a couple questions that you need to know about before buying your rental property! I will make sure you know them inside and out. Do you know about the 1% rule, the differences between single family homes and rental properties? What areas are hot beds for rental property? How to properly analyze and pick which property should be your first property? When is the proper time to renovate a property? How much should you renovate the property? What are renters looking for? Are you going to use a property management company? What is a reasonable amount for them to charge? Now for returns, do you understand CAP rates, Cash on cash return, Leverage ratios, income tax and tax benefits of owning a rental property? These and so much more you need to know before getting into rental property. Lets get your money working for you. You start with one rental property and you can snow ball it into 5-10 within the next decade like many people do. I have excel models that can help you determine the returns you can expect from the homes you are looking at. Also, lets talk about how you are going to finance your property? How much risk are you willing to take on and how much are you wanting to put down on this property? You also need to know about basic landlord law, you wouldn't want to get sued and end up having someone take your house. Please feel free to give me a call and I can go over everything with you. I have about 400k in rental property, which is 3 homes, but I have specialized in giving advice to people looking to get into their first rental.
Related Questions
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How do you get out of the rat race and build passive income?
I'd suggest investing in a business (or businesses) of your own. A successful business will provide you with the greatest return on investment you will likely ever come across. There's no blueprint on how to do this - but there is definitely wisdom, strategies and tactics you can use to significantly increase your odds of success and maximize your ROI. If you're interested in learning more - give me a call. In any case - Best of Luck!DB
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Where would you invest $5M cash to provide an income and get good capital growth over the next 10 years?
100+ unit Apartment Buildings. With the ever increasing mortgage lending guidelines disqualifying an estimated 80+ percent of the U.S. population, America is fast becoming a renter nation. This is why guys like Robert Kiyosaki, Grant Cardone, etc., are bullish on apartments. Ridiculous financing can be negotiated with Fannie Mae on non-recourse loans to maximize leverage and cash flow. With the right properties, cost segregation can immediately increase cash flow and ROI. 100+ unit apartment buildings can offer a great return on a collateralized investment and fantastic tax advantages. This is why our current posture is looking solely for these types of properties.VP
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What are some of the hidden costs most property development beginners miss on their first development?
There are lots of unexpected costs with land development and new construction. Examples include soft costs (arch, engineering, surveying, permit costs, etc) and hard costs (connecting utilities, clearing land, etc). Always have a reasonable buffer to take into account any unexpected costs. Best of luck!AC
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What are the best books or resources to learn about real estate development from scratch?
This should help you out: 1. Property Development for Beginners: A Beginners Guide to Property Development by Steve Chandler http://www.amazon.com/gp/product/1482580551/ref=as_li_qf_sp_asin_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1482580551&linkCode=as2&tag=pittspropedea-20">Property Development for Beginners: A Beginners Guide to Property Development</a><img src="http://ir-na.amazon-adsystem.com/e/ir?t=pittspropedea-20&l=as2&o=1&a=1482580551 2. Real Estate Development: Principles and Process by Mike E. Miles http://www.amazon.com/gp/product/0874209714/ref=as_li_qf_sp_asin_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0874209714&linkCode=as2&tag=pittspropedea-20">Real Estate Development: Principles and Process</a><img src="http://ir-na.amazon-adsystem.com/e/ir?t=pittspropedea-20&l=as2&o=1&a=0874209714 3. http://www.masterycoachingterence.com/TY
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Does anyone have any experience with storage units? I am looking make my first investment in a business and am considering this as an option.
I specialize in investment real estate; more specifically short sales and flipping houses. However I have friends in the industry that do specialize in storage units. I could point you in the right direction for sure. Are you only considering storage units?CB
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