Should I bite off as much as I can?

Question

I'm meeting a guy tomorrow afternoon that has 15-20 rentals in Lansing, MI and is looking to retire soon. I've been thinking about getting in the rental business and could use some direction. He asked if I'd be interested in taking several properties off of his hands or should I just start out with one property? All three houses would cost abut 200k total and rent between $850-1200 a month. I'm 27 and have never bought a rental property before and have only bought my own house. I don't have anybody immediately around me to bounce ideas off of in this category. Should I only pick the best of the three single family homes with a tenant already in it or should I try to do a package deal with 2 of them being vacant? Also, the house I own the mortgage is through Bank of America, should I go with a local bank to get a mortgage for these properties? I'm very green when it comes to this so I appreciate any input. I don't have anybody around me to bounce ideas off of in this realm. I'm a very handy person and can handle ass sorts of repairs and think I could manage taking on a few properties to start out.

Aaron Kite · Answer

Hi Woodward - I'd also be happy to have coffee and talk through this. I have a bunch of single family rentals. Bottom line... you dont want to over pay for these.Message me and we can figure out a time to meet - or a phone call

Michael Mudrey · Answer

If you're seriously considering, I'd be interested in putting a deal together with anyone else interested in these (or others) in the Lansing area.Also happy to chat with you on this.Mike

Tony Wooldridge · Answer

@Woodward William Beardsley, sounds like a golden ticket "MAY" have landed into your lap. However, regardless of how GR8 or not that this deal might be it will require you to do a GR8 deal of due diligence to make sure the #'s make sense for what ever type of investing you are looking to do. By that I mean, is it hitting the goals that you have set for yourself within your niche/strategy (do you even know what those are yet?)? So as GR8 as this sounds take the time to educate yourself on not only what investing you want to do but what that looks like from a numbers standpoint. Are you a appreciation guy or a cash flow guy? Full disclosure here: I am not a B&H investor (YET), as I am working on my first flip now. But one thing that I hear preached on BP throughout the site is take ACTION! That looks different for every person but ultimately it comes down to taking the first step into the unknown (which is a little unnerving) but once you do it starts to feel more comfortable with time. I like you don't have a huge (known at all really) support team around me. However, what I do have is my personal mentor Bigger Pockets. I lean on our fellow colleagues hard and they seem to never let me down. So it may feel like you are on an island by yourself at times but remember you have BP (good job on using it so far, but keep it up!) to help you through the hard times. Take a look in your area for local meet-ups as well, it also appears that you have a couple of BP'ers that want to meet up with you!So in closing, take the time to educate yourself so you know what your investing looks like for you and once that is done run endless #'s time and again so you know definitively what a good deal in your area looks like. Keep on using BP for all mentioned above to include meeting with other investors and finally when you have a grasp of what it is you feel comfortable investing in and it makes sense and you are ready JUMP IN! I wish you nothing but the best and here is to wishing you a successful 2017 in your REI ventures!

Daniel Callton · Answer

Hi Woodward - I'm investing in Lansing too. I'd like to talk about this deal with you. Could you call me sometime? Dan5177127935

Patrick Snyder · Answer

sounds good...i'll try to make that. How many usually attend?I'll include @Alex Corrion and perhaps we can expend the local network.Thanks!

Walter V. · Answer

🤦🏽‍♂️ duh. it's Thursday May 30th

Patrick Snyder · Answer

That would be great...which day?

Walter V. · Answer

Hey Pat,We have a monthly meetup here in Lansing next week at Tony M's 6pm. It would be great to meet you.

Patrick Snyder · Answer

@Woodward William Beardsley @Drew Purvis @Mark Jacobsen @Walter V. @Michael Mudrey @Aaron Kite @Daniel Callton Curious how this turned out. I still the ad on Craislist, which I assume is the same seller. If we all want to start a monthly meetup, I'd be up for it too...

Drew Purvis · Answer

Hey @Woodward William BeardsleyJust curious how this all shook out. Did you end up buying any of the houses? If so, how are things going so far? I am curious too if we have found the same seller. I am currently under a contract to buy 3 houses from an investor who owns about 20 houses and is looking to retire. If you don't mind sharing the persons name, send me a PM.