A young investor that has no idea how to get started.

[Chris C.]

( This post is VERY newbish, expect me to know nothing at all, in fact I'm sure I'll look at this post in the future and think of how stupid I sound like right now. Future me, sorry. )

Hello, I'm in the Toledo, Ohio area. My funds are limited, do up front cash I can do is $10,000 while the rest will be via loan. Properties I'm looking at are either multi family and/or single family in the price range of $90,000 or less. No condos.

Now, I think I know the basic gist of starting. Find a property, Analyze if it can give you a profit, Inspect it, Either buy or pass on it, Fix it up, Rent it out, Profit!

But, I know it's not that simple, and I'm very ignorant of a lot of things, so bear with me. But before that, would my current funds be okay to start with? is $10,000 enough? Let's assume that it's a fairly run down place, not too bad, but walls need painting, floors need to be fixed, cabinets, etc. Are there any other costs I need to be aware of ( I know that I need downpayment, maybe, and money to hire contractors for repairs plus an inspector, but aside from those, any taxes, permits or perhaps even needing to pay the electricity company/water company or something, I'd like to assume nearly worst case scenario )

Okay, now, how does one find the property to start. Go to a realtor and speak with a real estate agent in person, specifically asking them about rental properties or investment properties, or just going on online sites?

Found a property, now I'm completely new to analyzing repairs, so what would be a good pointer to see how much things cost? I'd rather have worst case scenario like replacing the entire carpet or floor or roof, repainting the entire outside, etc... but how much do those usually cost? Again, let's say nearly worst case scenario for each. ( Or just an estimate for all repairs that usually happen )

Now, inspecting it is straightforward, I think. Find a real estate inspector company, call them or visit them, and arrange to view the property. Though, would I need to inform the real estate agent of this or can I just show up to the place? Would I need to establish a closing date or can I have someone inspect it before that? Also, should I be worried about any tax liens ( I barely even know what those are ) or any surprise bills that are below the property's listing price? Like some outstanding balance on the previous owner that gets transferred to me? Will the agent/seller tell me about those?

Now, let's say it passes, needs some light repairs that aren't bad, rent estimate is okay, I'm going to buy it! Do I go to the bank first and ask for a mortage or a different loan? Private money lenders? Do I need to be approved or preapproved first, or do I need to talk to the agent/seller first ( Like, do I need any information from them and take that info to the lender/bank, or vice versa... basically, what to do first when closing a deal. ) Now, I got the loan, agent/seller is setting up the closing date, I got the inspector ready, anything else I need before I sign the deal and close it?

Now, fixing it up, where do I find contractors? Online? Would the real estate agent be able to find some for me? Do I need to hire them out individually or will I just need to hire one person who will find a team? 

Okay, almost done, place is fairly fixed up and clean, all the paperwork ( I think. ) is done, I just need to rent it out, where is the best place to advertise? Plop down a "For Rent" sign? Do it online? Should I go to the agent I talked to before and would he be able to list it somewhere or find a tenant for me? I know I also have to screen the people. Though, do I need any paperwork or permit to rent out a property, or can I just rent it out and have a tenant sign my own self-made lease and that would be fine? Also, how would the entire process usually take from the closing date all the way to finding my first tenant? ( Toledo investors, here's where I need your help. ) Would it be common to have it vacant for a couple months, or can I expect a tenant to apply ( Yes, just apply, not actually move in ) within 1-2 months? Of course, I'll be pricing the rent fairly even or lower than other places.

For those of you who made it through reading all of this, I thank you for your time and any advice or answers you can give me. I plan to buy my first property by the end of the year, if not sooner if I can find a mentor of sorts that I can pay to help me with my first property. And this is a bit late, but would you all suggest a property management company for my first property, or a "Turnkey" property? ( That is, if I'm right, a turnkey property is basically a property that's been fixed up and all, plus a property management company runs it for your for a while before letting you take over completely? Or will they run it for you indefinitely and permanently take a cut/fee from your earnings? )