Likely sounds crazy but I’m in the beginning process of purchasing an investment rental property. I’m familiar with the purchasing process and whatnot, but would be curious if anyone has feedback on managing the rental directly or signing on a management company? It’s going to be a single-family home for context. Do I need a lawyer for this endeavor, where is the best place to get a rental agreement, suggestions on rent pricing, etc. Any information would be greatly appreciated!
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Unless you can get it at a 30%+ discount to comps, I wouldn’t buy right now.
If you do, I would manage it yourself. Use Google/Craigslist/etc. for determining market rents.
See if you can get the seller to finance or assume their loan if they have a good fixed rate (assuming you’re not paying cash).
Read, read, read and come up with your investment plan. I’d recommend Bigger Pockets pod and community.
Good luck!
thanks!
It is the worst time. Prices are hugely inflated because of the long bull run and weird period of low interest rates. Now interest rates are back up and there is political pressure to regulate the housing sector. Also worth remembering that the recent period of high prices, low availability, and ongoing price appreciation is freakish. Over most of history residential real estate has been a depreciating asset that has modest margins and requires constant upkeep. What we are seeing now is a reversion to the mean across the board which will be very difficult for even well positioned landlords.
Unless you can get it at a 30%+ discount to comps, I wouldn’t buy right now.
If you do, I would manage it yourself. Use Google/Craigslist/etc. for determining market rents.
See if you can get the seller to finance or assume their loan if they have a good fixed rate (assuming you’re not paying cash).
Read, read, read and come up with your investment plan. I’d recommend Bigger Pockets pod and community.
Good luck!
Meet Kevin has a great real estate course. I would highly recommend it.
Ps I have no affiliation with him whatsoever but if I were new to the game I would definitely check out his videos and his course.
What are the prices in your market? If they’re high, hold off for now. Second, definitely consult a lawyer and accountant. The first will advise you on how to structure the purchase. The second will help you estimate the returns of what you can expect from the property as an investment. Third, if I were you, I’d definitely hire a management agency. Since you’re new to the industry, you might not know the raw technicalities of managing a space. Billing your tenants is easy, but fixing a leaking pipe, or solving an electrical problem requires gifted hands. And these issues ultimately decide the difference between a happy tenant and one that’s sure to get pissed off. Fourth, get in touch with realtors and agents. Know what the rental prices are in your area, which will help you roughly estimate the income based on the available area for leasing out. Get your expenses estimated, and see if this is actually worth pursuing.
Thank you for your thoughtful response. I appreciate it.