How to find properties with income?

[Matt DuSold]

Rental properties have always caught my eye as this is where I would like to go later on in my REI career. I do not have too much cash (more than the average college student but I am a college student) but do have perfect credit. I figure now until I am out of Grad school wholesalling is the way to go.

Obviously if I find that right property I will jump on it, but how do you find landlords selling? I don't think it would be smart for me to just buy a condo and start advertising to rent while paying off the mortgage. I know that there are landlords selling out there I just don't know where to look I guess. Any help I could get on this I would really appreciate it. Also, if there would be a better way for a new REI to go about this feel free to share! I am new and I won't be hurt to be told I am wrong. Everything helps, THANKS!

[Grand Wally]

Excellent question indeed....and I'll be happy to respond....in fact, I ONLY buy properties that are cash flow positive from the start. To me, investing is buying a property and getting residual & possibly perpetual income from it. Flipping, etc is speculating IMHO, not investing.

In short here is what I do....

Scenario 1...

a) Contact a few realtors I know who know how to look for good properties.
b) Have them look for "distressed landlords" who just want to get out of the rental business.
c) Buy the home contingent upon acceptance of the current tenants and do your own screening of them. If they pass your criteria and the deal makes financial sense, do the deal.

Scenario 2...

a) Find a great property without tenants.
b) Put an offer in on the home contingent upon the seller finding you a renter before you buy it. If they resist, you sell the deal by saying..."hey, look it's a win win....if you find a good renter for me that I can screen, then I'll buy the home. I get positive cash flow starting day 1, and you get to sell the home....win win!!"

In either of these scenarios, you get to acquire a property with a tenant starting day 1. Just make sure you screen the tenant!!!

It's that simple.