First purchase of a rental property. What would you do?

[Bryan Wilson]

In the spring of 2018 I have the opportunity to purchase a townhome valued at $110k for $79k.  The owner is a friend of the family and just doesn't want it anymore and doesn't care to make a profit. they are very well off anyway.  They know I've been interested in getting into real estate (flipping and rentals).  It is in excellent condition.  No issues at all.  Current tenant has lived in it for over a year with no plans on moving.  Currently pays $1100 a month rent. 

My fiancé is all on board for starting out in real estate. We were thinking about creating a LLC and use this townhome to help start our journey. We have alot of cash saved and along with the equity in the townhome I think we have a decent start. We also have decent jobs as well but want to try and not use it. Our credit is pretty much perfect as well. So, what would you do? Thank you all for your input. I'm anxious to see what the pros say.

[Daniel Hyman]

Bryan Wilson
Welcome to BP. Sounds like you have come across a good deal. Others might disagree, but I certainly would not look to purchase my first property without a realtor. Lots of moving parts and it’s good to have someone in your corner getting you to closing.

As far as entity structure, it’s always recommended to consult with an attorney and CPA for tax and legal implications. Every situation is different and you’ll probably want advice that’s tailor-made for you.