Baby Steps - Wife and I want to buy property to rent. Where to start?

[Jeff Howard]

Hi all, Wife and I are looking to buy property to rent in the next few months.  Would like to get some help on the plan forward, we are very new and risk averse.   Here is what I am thinking.  Looking for a house or duplex close to me, looking to clear $500 per month after expenses (before taxes).  

I just bought a house with a Realtor and sold my own without one. I am thinking I can save a lot of money by not using a Realtor to buy if I find a FSBO, but then how do I get to see inside MLS listed houses...

My own stab at the first steps...

1. Build the strategy, what kind of renters am I looking for, what kind of landlord am I, where to buy, what to buy.

2.  Build team:  

  a. Find a Realtor (do i need one?) 

  b. Find a Lender (I will need one, I have some cash but not enough)

  c. Find a repair man (I might want one, I have a busy life)

  d. Property manager will be me, but I can be soft which is a problem.

3.  Research Properties around the area.  What is the fastest and easiest way to determine market rent values?

4. Build rental agreement (I believe 3 and 4 should be worked simultaneously, once i find a good property I want to be ready to rent it.)

5. Build Marketing plan

6. Buy Property

7. Rent Property

What are your thoughts folks, any site out there that covers this topic well?

[Jeff Howard]

Originally posted by @Elizabeth Colegrove:

Congrats on getting started! 

There are lots of great resources. Everyone has their own opinion on realtors! Personally mine has been the chief driving goal behind my success. She has helped me win on multiple offer without being highest and best (there is more to this game than just money). She has brought me offers before they are on the market. She has never steered me wrong. I also haven't seen sellers reduce the price. The agent often just wants to double back both sales!

That being said about selling. I have only sold one house and used a realtor. I have thought about this, and don't have a good answer! I think it depends on your market. I know in hot markets you might get a way with it but many agents won't show clients houses for sale by owner! So you would have to have an area or house that someone "really" wants.

 The two Realtor I have available to me are good folks, and you are right about the seller not lowering the price much.  They have an agreement to give 5-6% commission if the buyer brings realtor or not.  But on the steps to doing this, what are your thoughts there?  Is there a fast way to determine value? Are there any steps missing?  Any pitfalls?