Wanting to start a rental property business for cash flow

Wanting to start a rental property business for cash flow

Member since 2018 · 3 posts · 1 vote

Hello everyone, My name is Thomas, I am 28 and have been working since I was 17 in high school. I am sure everyone knows how that feels, and I am tired of it. There is a better way to live, and I have set my eyes on it.

I have decided I want to start a business with rental properties. I have done a lot of research but I still don’t even know where to start, there is just so much information to go off of I am completely lost. I would love to meet a mentor, that would be happy to help me out and walk me through it patiently.

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I know that I should start with one property and build from there, but how do you get the financing that also won't eat up my returns to where I'm paying out of pocket? I work a job for 17.50 an hour, so my own money is all tied up. I have saved a bit but not enough for any down payment. I am guessing I should go the LLC route, how do I get that started? If I go through a service that sets it up for me, how much do I pay them annually to manage that? Who/what do I need for my team of professionals to help me? How do I pay them and how often and how much?

Any advice would be great.

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Cameron TopePro Member
Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
7y

@Thomas Carlson start with the BiggerPockets podcasts and ingesting as much information as you possibly can. Those episodes will answer the majority of your questions. 

Best of luck!

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  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Thomas Carlson start with the BiggerPockets podcasts and ingesting as much information as you possibly can. Those episodes will answer the majority of your questions. 

    Best of luck!

  • Property Manager · Centennial, CO · Member since 2019 · 95 posts · 63 votes
    7y

    Start with your first property by self-managing. Who knows, you may find out you enjoy property management and start that as a business like I did. I cut my teeth first with my own rental property and it took off from there. Great advice from @Cameron Trope to research the BiggerPockets site for a lot of great information. And talk to your bank about the first home loan as you may find they have programs in place for a lower down payment, e.g. only 3% down. 

  • Rental Property Investor · Houston, TX · Member since 2017 · 29 posts · 9 votes
    7y

    Thomas, 

    I know how you feel. I listened to BP podcasts and watched webinars. I went to seminars, paid for classes and mentorship. It was all worth it. 

    I would suggest you to do as Cameron said and listen to BP, get all the cheap free education you can and keep grinding. Keep the first goal in mind. Replace your income and then go from there. It could take you years so be practical and prepare for that. 

    That being said, I would shift your focus on wholesaling education first. That is the fastest way to make quick money. Go to seminars in your area and keep networking! 

  • Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
    7y

    @Thomas Carlson

    Do you own a primary home?

    If not, I would recommend starting out purchasing a primary home that you house hack and live in one of the units. Maybe an under market valued property, that you can update and increase rents on? 

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