How to buy rental properties

[Account Closed]

Hey guys,

I'm looking for ways to learn, and buy my first rental property, but I've got a few things that I don't understand. I'm looking to buy a small 1 unit, (1 bed , 1 bath) flat.

• Do you buy the flat (without furniture) and than rent it out as is? Without any furniture? Because in that case, I would have to lower my rent because similar flats are renting with similar price but WITH furniture. (bed, wardrobe, microwave oven, etc.) Or do you buy furniture separately?
• Do you find a deal and buy a flat that is in "ready to move in" state? Or do you buy and than do some reparation? If so, how do you still manage a positive cash flow?
• And finally, from all those answers, wich one would you recommend for a beginner as his first ever deal?

I would like some experienced investor's answers, but obviously everyone's help is appreciated!

[Laura Williams]

@Account Closed it's unusual to buy a place that's already furnished unless it's a short term vacation rental  ...at least here in the States but anything can be negotiated if you wanted the furniture . It would be more of a negative than positive to long term tenants as they have their own furniture & might not like your taste. 

People buy places that are rental ready and other people buy places that need work. It depends on the price & deal you negotiate. You'll have to analyze the numbers and see what works to give you the most value & cashflow. 

As for a beginner I would recommend a place that didn't need a lot of work unless you are handy. Contractors tend to have a bad reputation for being shady & best to have your first deal go smooth so you don't get turned off to being a real estate investor. Your first deal should be small as you learn so much going through the process and are only going to be better on the next ones.