Need a mentor

[Butch Greene]

I have a friend who owns tons of properties, but he's too busy to help me constantly try to find a property in Chapel Hill to buy for my daughter to house hack.  
And...I don't have the money right now to buy the "PRO" account, so I can't use the rent cost estimator.
So...yeah...I feel like a random guy who has listened to over a dozen of the Bigger Pockets podcasts and YouTube videos, tried to read anything of value on the forums and nothing.
I need steps A, B, C & D.  

Right now...my ability is to look at crap online and know nothing about what to do with it because the only thing anyone ever says is "If the math works..."  but I don't have access to the tools.  

[Cory J Thornton]

@Butch Greene -  If you see a property of interest, asking and answering the following questions will give you a decent look at the potential a property has ... it will also help you build a new skill set. 

- What is the income potential for the property? This can be found searching for places to rent in the area. If there are not enough good comparisons I would skew conservative in your revenue assumptions. There is a tool online called Rent-O-Meter that also help pull together rental history in a given area. I would lean more on your own research than on any rent estimator online. 

- What are the property taxes? If you google "_________ county tax gis Map" you should be able to easily find the correct site for the county. You then search the address of the property and you can see zoning, pictures, property records and how much they payed the previous year in taxes. If you are working with a real estate agent then this info is usually also on the MLS.

- What is the insurance on the property? Insurance companies love to advertise free quotes. 

- Are you going to self manage the property or hire professional management? If you are going to hire a management company then call one and get a quote. 

- Most folks budget 3-5% of the monthly income as a repair cost. 

- Most folks budget 3-5% of the monthly income as a vacancy cost. 

- Most folks budget 3-5% of the monthly income for capital expenditures. 

- How will your debt be structured? If you or your daughter plan to apply for a loan, then you can get a term sheet without them pulling your credit. They cannot lock in any rates for you, but you can give them some high level details and they can give you some terms to use when running numbers (LTV, DSCR, Term, Origination Fees, Appraisal fee, ...). Once you have the cost of your debt calculated, that gets added to the equation. At this point you should also have an idea of how much you will need to put down and what your principle and interest payment will be every month.

- If there is an HOA, find out the fees for the community.

- If you guys are planning to offer any amenities (utility included, internet included, lawncare included...) then make sure those costs are nailed down and factored into your thinking. 

The above list may not capture 100% of your cost or the factors to consider, but it should provide enough of a snapshot to tell the story of what the property will cost and what it can make on a monthly/yearly basis. It is time consuming, but if you go through the process manually a few times to get these questions answered, then every time after that you will spend less time hunting answers. You will also begin to develop a sense for what property does and does not have potential before you even run any numbers. 

This is a competitive market. The average property in the Raleigh area is on the market for five days before it goes under contract and is sold is 35 days or less. In a market like this it takes running numbers on dozens of properties to find one worth considering. My team and I look at thousands of listings every week. The next step beyond learning to run numbers is making sure you have your financing plan ready with a pre approval letter. If you find a property that works for you, then the data says it will be under contract in five days. The time to line up debt is before you find the property you want. 

Best of luck in your learning and investing journey! The only way you lose is if you stop learning and quit taking action ... play the game with a 20 year mindset and just focus on the knocking out the step in front of you at this moment.