Best way to start w/o house hacking?

[Randy Merritt]

Hello BP!

I am a first-time home buyer looking to start my Real Estate investment journey. My question is this, other than a house hack, what is a good way to get started? I have $$ for a downpayment and closing and am pre-approved for bank financing. I ask this because the market I am looking in hasn't had any multi-family properties list or sell within months (within my budget). Looking to purchase sooner than later due to the extremely long commute to work. 

What are some ideas that you've used?

Thanks everyone!

[Scott Trench]

I think that you've got it all ready to go. If the goal is to purchase a rental property, then the biggest remaining hurdle is to determine your strategy and define what you want (and what "good" looks like). Try this: 

1) Write down exactly what you want and why you think that will make a great investment over the next 10-30 years. (E.G. - "I want to buy a duplex in Denver, CO in a great location and maintain it well for decades because I believe that a property in a desirable location in my city will only increase in value over time, as long as I treat it well and place quality tenants. I like 1950s or later builds, large units, plenty of parking and these five specific neighborhoods. I want places with the potential to add cosmetic value, with sound bones, and a nice yard, as that makes my property attractive to tenants with pets, increasing my applicant pool.")

2) Make a list of every property that has sold in the last 90 days in your area. Analyze every one of them assuming that they are an active listing. Determine if you would have purchased any of them. IF you would have purchased none, restart. Refine your search until you have at least 3-5 properties that have sold in the last 90 days that you would have purchased. These are "good" deals, by definition, for you. 

3) Set up a search with your agent, and be ready to react whenever your definition of a "good" deal comes on the market. 

Hope this helps!