New Investor to Quad City Area (Illinois & Iowa)

[Gregory Wagner]

Good Afternoon BP!

I am new to the investing game, started out listening to podcasts and reading up on REI earlier this year. I found out about BP through someone I knew from college and have been lucky enough to go to my first REI meeting this past Wednesday. I currently work Mon-Fri 7am-5pm and try to dedicate time to educating myself in the car (podcasts) as well as in the evenings (reading). Recently, I have been interested in investing in a duplex or triplex to house hack, but have struggled with best practice for finding houses.

What can I be doing to increase my knowledge and begin to feel more confident in finding my first rental property? Are there other/better ways to look for property than Zillow, Trulia, etc?

The forums and tools in BP have been a great help so far.

Thank you,

Greg Wagner

[Lore Postman]

Greg,
Your post caught my eye because I started my business writing career at the Moline Dispatch/Rock Island Argus and lived just down the street from Silvis. Small world!

I haven't been back for a while, but if the area is as I recall, it's an "old town" with many long time owners and multi-unit property owners. I like those areas because I try to negotiate seller financing on all my deals.

I'd recommend targeting the areas you are interested in. Grab local map and circle the areas you'd like to live in (since you mentioned house hacking). Then take every excuse you can to drive through those neighborhoods as frequently as you can.

Start noticing how things look, how people keep their houses, where they park, how the park, what the porches look like, etc. Why? Because when you get used to the normal, you'll notice changes.

Changes often are my first signal that a house is in transition. Too much trash to fit in the can could signal a tenant is moving out. Next comes the for rent signs, or people doing work in the house. Stop by and chat. Call the number on the sign. Ask about the rental, and let the conversation lead to discussions about selling.

I should caution that most of my deals take months to occur. I'm a buy and hold investor, so I'm picky about locations and try to buy cash flowing properties on streets that are likely to go commercial in 7-12 years after purchase, AND the seller carries the notes for 5-10 years. I'm usually told 'no' three or four times (over multiple months) before a seller and I agree on terms.

I know it's hard to be patient, especially amid so many thrilling stories of other people's real estate empires and success. Stay committed and focused, and your deal will come along. You've already started the process and are headed in the right direction... You're asking questions here!

Good luck!