Before I make my first purchase

[Robert Arquilla]

Okay so I’ve done a couple of these but after saving up some cash reserves for awhile I’m finally ready to make an offer on a property.

I found a single family house in a quite neighborhood which I know very well (used to live on the same road). It’s listed for 43k and someone could move right in. It has 3 beds and two baths with about 1500 sf built around 1960. I’m hoping to get an offer accepted around 36-39k which would bring the principle, interest and taxes around 300. I figure another 50 for capex, 50 for vacancy, and 50 for maintenance so all in around 450.

I did some research online and also asked a realtor that works specifically with investors about rent estimates and she believes it should rent from 675-775. So should cash flow 225-325 per month.

I would appreciate any thoughts or insights, tips for a nubie.

Thanks everyone!

[Nathaniel Hovsepian]

@Robert Arquilla I personally use a property manager. I have vetted quite a few in my area and have found one that I trust. Due to this, whenever I make an offer I always factor in that I am going to be paying them 10%.  I got into this to be an investor, and managing my properties is a job, not an investment.  However, there are tools online where you can have your potential tenants be required to do credit and background checks as part of the application process.  This is good for multiple reasons.  It will weed out people who know that they aren't qualified right off the bat as they won't be comfortable filling out the information, so you can focus on the quality potentials.  These services will give you a detailed breakdown of the tenants financial situations as well, so you have a fairly good idea of what they are getting into.  Here is one I used in the past 

https://www.mysmartmove.com/