Newbie Investor Needs Help!

[Alexander Manning]

Alright Guys , Im a 22 year old new investor with 0 properties . I have read real estate books and listening to the podcasts so I do have a minimum viable knowledge base. I am comfortable with my ability to do numbers as well.  So with about 5k in my pockets and shoddy credit I started looking for my first house hack deal. I knew that with my credit and the amount of cash I had that my first deal would need to be done using creative finance. Well I found a potential deal. I spoke with the owner of the property and he is going to show me the property on Saturday AND he is open to a creative finance offer. 

The problem? I don't really know what I am looking at or what to look for (physical) when I view the actual property . The property is a fully leased duplex here in the atlanta area 10 min away from georgia tech. As far as the numbers goes I cant say for sure what exactly what they are at this moment because i won't get the exact financials until Saturday but I'll update with the numbers then! 

So what should i look for in the actual property when i view it!? Also i should add that I am a bit frightened because when I started looking for deals I did not think I would actually find one but I did! and also I feel like everything I read and listened to just went out the window ! Im really in it now! 

Thanks for all the advice and tips in advance guys!

[Ozzy Smith]

The first deal is always the scary one.  My situation was similar to yours.  I never expected to actually get all the pieces in place and the next thing I new I bought a house.  The things you need to look at are the numbers.  Don't let someone talk you into anything at first visit just because he says it's a good deal.  Tell him you need to see a copy of the lease for the tenants in place and prior to closing you will want to see proof that they really have paid what he claims they did.

Second you will want to be able to identify any problems with the house.  If you know how to find them you're good.  If not try to take someone with you that can identify what needs fixed and have an idea what it will cost to do so.  If neither of those options are available use your phone and common sense.  Think about where you live and if something looks old or broken or not to the standard of what you would want to live in take a pic and make notes in a notebook then share with someone that knows rehab to help you with costs.

Finally if the tenants are there ask them.  Tell them straight up that you are potentially going to buy their house and that the only way you are happy is if they are happy.  The only way that works is if the house is the way they like it.  Ask them "if I were to buy this house, do you want to stay?  If yes show me everything that you don't like now and would like fixed."  They will show you every little defect because they assume you are there to help them and will love you.  Keep in mind many things they show you will be preferences not necessary repairs.  Things like not liking the color of the tile or paint isn't required repairs.... take those things in stride, listen, but not deal killers.  You don't have to fix those and they probably stay.  If you do fix them they love you and pretty much just gave you permission to raise their rent next renewal period.

I hope this helps and good luck