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No more talking, time for action
I very new to this but I want to start off by saying that I've read the books, been on the webinars and rental properties is something I want to do right now. I currently live in the Akron, Cleveland Ohio area and now I'm looking for multifamily complexes in these areas. I did see a couple of multifamily foreclosed properties in the Columbus area as well that could potentially be good deals for me. Before I go is there any advice I should take with me before I dive in head first towards my first real estate deal. I would appreciate any input as I would like to learn as much as I can and eliminate as many mistakes as possible for a newbie. What was your first time like? What did you learn? What things should I avoid? My end game is to spend more time with my son and less time working tedious and unfulfilling jobs to support him. Any help is greatly appreciated.
@Dezra Robitsonlove the action-oriented approach. To get going on multifamily you'll need three things:
1. Knowledge
2. Money
3. Deal
Re: knowledge, are you good with underwriting the deals?
Re: money, do you have your down payment for a property lined up already?
After the first two are taken care of then you'll be ready for the deal.
Thank you Joe I will definitely use those three things. As far as underwriting goes, I'm not great at that at all. But no better time then now for trying to learn how to do underwriting. Thanks for the advice :-)
@Dezra Robitson Sounds like you have been doing your research and gaining the knowledge. Now its Time To Pull The Trigger. Go for it! You can Do it. Wish nothing but success for you.
Thank you @Account Closed
"No more talking. Time for Action."
That's what she said! LOL :)
Sorry for the joke but it was perfectly set up for that. On a serious note I am curious to know if you would be buying a multi unit to live in one of th units or strictly for investing purposes. I think the "House Hacking" approach is smart but to buy for investment only may not be for a beginner. At least that's what people tell me. I'm new to this too. From what I understand Ohio has several great markets for cash flow. I would suggest looking into SFH investing and using turnkey companies to help/mentor you.
@Dezra Robitson You can absolutely do this. I am new but I have also agreed the only thing left to do is dive in. I would say gather your team if you haven't and really consider your business model. How will you find great tenants, what type of lease, what will your exit strategy be. the more you know your process and how you will accomplish your goals the easier it will be. Also don't give up the freedom we will achieve will be the best accomplishment in the world. Get qualified and figure out the money and then buy a property that fits your criteria!
@Account Closed Yes buying a rental property and living in one unit as I repair the remaining units to be rented out is exactly how I think I should begin. Columbus Ohio has some great foreclosed MF homes in great areas. I'm thinking I should def start there. Right now I'm still raising the down payment for it and saving as much as I can. Do you think the FHA loans is better in this scenario, I know you have to live in the property for a year as one of the qualifications. And looking for a mentor is definitely something I should do right away. Thanks
@Vanessa Wright I'm working on my exit strategy right now as we speak. I don't have a team together just yet, but I will definitely look into that as well. Thanks for the advice
For my second deal I found a duplex with long term tenants already renting. That kind of free's up a lot of error and risk. I just had them sign a new lease. So far it's going smoothly I am doing repair work needed on the outside but I made sure the units were nice. Let me know if you have any questions, I am right in Cincinnati.
As a fellow newbie who just did his first deal in February, my biggest piece of advice is always remember "why" you are getting into real estate investing. I had a lot of things go wrong during my first deal, but instead of letting those failures defeat me, I persevered by focusing on my "why." My "why" is always evolving, but it looks like you've already got yours! (Spending more time with your son). So whenever you are feeling down or you make a mistake, think about "why" you are doing this. What's worse, dealing with a clogged toilet, showing a unit to a prospective tenant, firing a shady contractor or being stuck in a 9-5 not being able to spend time with your family? If you can leverage the power of your why, your purpose and focus that energy into real estate investing, you will achieve amazing success!
Good Luck
Congrads on your new endeavor in realestate the BP family is very supportive of all types of investor newbies all the way to the veterans.
My suggestion to you is to know your approach write it done. If you're a cash buyer then you need to know your max investment with rehab included. If you're financing then you need to get a pre approval so you know your max qualification from the lender, and if you are financing the more the units the better 2-6unit still falls under residential.
I wish you the best of luck.
@Dezra Robitsonwhat areas of Columbus are you looking in? I am new to Real Estate Investing too but I live in Columbus and may have some advice on areas at least.
How are you finding deals or foreclosures?
@Matt Keller A lot of my findings have been drive by's on my way to and from work. I see a few near the downtown area right off Broad st.
@Muhammad Abdullah Thank you
@Theo Hicks Congrats on your first deal. I will keep your advice in mind
@Erin Tarantino Thank you, I will write soon if I have any more questions
Originally posted by @Dezra Robitson:
@Account Closed Yes buying a rental property and living in one unit as I repair the remaining units to be rented out is exactly how I think I should begin. Columbus Ohio has some great foreclosed MF homes in great areas. I'm thinking I should def start there. Right now I'm still raising the down payment for it and saving as much as I can. Do you think the FHA loans is better in this scenario, I know you have to live in the property for a year as one of the qualifications. And looking for a mentor is definitely something I should do right away. Thanks
I think it is a common misconception that all foreclosures are good deals. Just because a property is distressed and below retail price does not make it a deal. The fact is that most foreclosures are listed on the MLS by the bank. This creates competition and drives the price up to market value.
Is a distressed property cheaper then a rent ready property? Absolutely.
Does that mean it is a deal? Not at all.
Keep this in mind when looking for deals.
@John Horner Thanks I'll keep that in mind