Help Needed

[Isaac Kuehn]

I'm currently 17 and i'm turning 18 very soon. I'm really want to make real estate my full time career. But, do this I need to get my foot in the door. I looking to buy my first rental property but I need some help. Below I have created a outline for how I'm going to get my first rental property. It doesn't have every little detail all I'm trying to outline the steps I need to take to begin. The biggest problem i'm running in to is how am I going to manage a property when I first get it (that is why I stopped the outline at self-management) and how can I make sure my month expense don't exceed rent coming in. I wont have very much money to spend on unexpected expenses right away but that is a risk i'm willing to take to get started. 

Other than doing my own research and educating myself on this industry i'm working two jobs to save up for a down payment and building my credit up so I can get approve for a mortgage. 

If anyone with rental property experience is willing to give me a few pointers on what direction to head in to get my first property I would great appreciate it. 

Develop a plan- Whats the max price I can afford? How much can I afford for a down payment with the money I have?

1. • ARRANGE FINANCING: where can I get a loan from and with what interest rate. (Do this before I even look at a property.)
     • FHA loan and low down payment (3.5%)
     • 203K loan: needed repairs of a property into the loan itself
   • Figure out what the monthly payments would be to pay down the mortgage.
     • Look at average rents of similar houses and see if it is profitable factoring in insurance and taxes
     • Calculate break even

Find an investment property- Consider:

• What kind of investment property you want to buy
  
  • Town house
  • Signal family home
  • Condo
  • multifamily
• How much you can afford to pay
• What kind of neighborhood you want to invest in
• What the average rent is in your area
• What kind of return on investment you hope to make.
• Expense involved with owning the property: taxes and insurance (once found, compare with average rents of similar houses in the area)

Searching for properties by filtering in the area you want, at the price i need and the average rents higher then your break even point: use the following to find properties:

• • • Realtor.com
    • Redfin.com
    • Zillow.com
    • Trulia.com

More importantly talk to real estate agent, give them my criteria and tell them to let me know if they find a property that fits.

Once I find a property talk to agent and make an offer lower then posted and start negotiating. To cover costing cost I will negotiate closing prices in the final sale price.

Closing costs?

Putting the house on the market- Putting the house up for rent either through a management company or I will do it myself.

1. Renter warehouse: 1 unit/
   • cost based on lease length or monthly payment based on amount of units
     • plus $99 setup fee
   • Rent warehouse: http://renterswarehouse.com/rent-your-home/pricing-summary/
2. Land lording myself??