Purchasing Rental Property

[Sydnie E.]

Hello BP,

I am new to investing and currently looking into purchasing my first rental property, four units. I am not sure what the first step should be. I plan to call and have the property inspected to see if there are any major damages to the property but I don't know if I am making a smart move or not. How do you evaluate rental property to see if it would be a profitable investment? Does the 70% rule still apply? The property is not in the best shape and from the looks of it all of the units will need repairs. I not sure what type of things I should run away from or just fix it and hope for a return.

I also would like to keep my investment adventures separate from my personal credit and have heard that setting up a c-corp is the best way. The internet people search will show any businesses that you have and I don't want random people having that information. As a newbie would it be smart to set up a c-corp with no current property income. Can anyone tell me the best way to go about this in the least expensive approach?

I welcome and appreciate all feedback.

Sydnie