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Buy Rental Questions

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  • Buy Rental Questions

    This maybe a little off topic and i am sorry if it is, but I want to buy a home and possibly rent it out to someone. I had the following questions

    1) In the covid19 pandemic area, how hard is it to find renters who will pay for the rent? How about the lack of the ability to evict anyone who cannot pay rent due to new restrictions preventing this in most states? Anyone have any experience?
    2) How do I go about hiring a property manager?
    3) I have reviewed several of the podcasts on WCI, any ideas which ones might be helpful here or a useful guide to do the following:
    Buy the property, initially with a mortgage?
    Survey the property to make sure there are no issues before purchase
    Rent the property out?
    Maintenance and repair of property
    Also liability insurance for the property will be needed as well.

    Thank you

  • #2
    If you want to buy a home as an investment property, the first step is to learn how to analyze the deal. You need to be able to calculate the cap rate, the cash on cash return, the internal rate of return and other similar numbers. The ability to analyze deals based on those numbers is real estate investing 101.

    If you have no idea what I am talking about, go online and get educated before making an investment decision. The level of knowledge needed is fairly easy to gain if you are a physician.

    In some markets, homes make excellent investments. In other markets, home rentals lose money every month and make terrible investments. It is best to know what kind of an investment you are making and the likely returns before you make a decision.


    • #3
      Bigger pockets is the forum to go to. They have calculators there. And books, blogs, podcast, etc. Lots of good resources.


      • #4
        Know what you own, entry and exit.
        Much of owned real estate is taxes too, special rules.


        • #5
          Thank you. You are so helpful I really appreciate the advice.


          • #6
            I agree with the others that you need to educate yourself before jumping in and biggerpockets is a good resource. I took 2 years to educate myself before my first buy but it may not take you that long. After you educate yourself try to find a good realtor that works with single family investors and knows the local market. Don't be shy about interviewing several of them. The realtor may also have a recommendation about a good local management company but be sure they don't have any monetary relationship.