Our start in real estate began from very humble beginnings.
My husband and I bought our first property at the ages of 23 and 25, on October 25, 2011 after our 3rd move in 18 months. I had just graduated from grad school and was unemployed and without a job.
We bought a home based on one income and used my husband’s VA loan. Fast forward four years to today; we own seven houses, with two more expected to close by Christmas. We have a net worth of over $400,000 and make almost $2,000/month on our REI rentals.
All of this was courtesy of investing in rental property and thinking outside of the box using the little resources we had. Of those four years, I only worked in a professional capacity for less three of those years, due to relocation for my husband’s job (military pilot).
I share this as inspiration; not as a brag. You can do anything you set your mind to in real estate. In real estate, no beginning is too small, no investment is too large.
Real estate is an awesome investment. It is adaptable to your goals, and your pool of resources. The benefits of owning rental properties are as vast as your goals and desires. Don’t let analysis paralysis or the fear of failure stop you from getting started!
You will make tons of mistakes. Trust me — I did!! Still, I am so thankful for our real estate investments. Most importantly, I’m glad I started.
Real estate comes in many forms — multi-family, shopping centers, storage units, industrial office buildings, residential housing — all of which come with different sizes and price tags.
There are lots of financing and management strategies. This unique melting pot of options means that anyone can gets started with a little bit of wisdom and a lot of out of the box thinking no matter their financial planning.
For this guide we are going to focus on residential single family homes and how to buy rental property in this category.
While we’re focusing on single family homes, with some minor adjustments, this plan could work for many other types of rental property.
The key is to have a model that works, and to use that model to guide your plan. A great plan allows you to get to your goal with minimal mistakes.
Here are 10 things to evaluate before you buy your first income property:
SEE ALSO: An HGTV star says one equation can tell you if your rental property is worth it
What type of property do you want to get started?
While there are tons of property types; we are going to focus on single family. Even within this niche you can get started with a personal property meaning you live in it first and rent it out when you move or you can buy a rental property. This means that it is a rental property from day one.
Do you want to be a local investor or are you willing to buy long distance in the best real estate markets?
Being a local investor allows you to be able to check on your properties easily if there is ever an emergency. It also makes it easier to self-manage or supervise a property manager.
Long distance allows you to invest where the market make the most sense for cashflow; not just your local market (i.e. Kentucky versus New York City). You can live and work in California and invest in the Midwest where your money goes a lot further with higher returns.
Do you want cash flow or cash flow and appreciation?
Some markets such as California, DC, or New York City, see large amounts of appreciation that a landlord can anticipate. Other areas such as small town Texas, Wisconsin or upstate New York are cheaper and return large cash returns but the house will never go up in value. When you sell the house it will be worth the same amount you paid for it.
See the rest of the story at Business Insider