Getting started in Rental properties

[Adam Guard]

Hey everyone! So I my company flips houses but is looking to get into rental properties but to be honest, we have no idea where to start. Any advice on how to begin analyzing properties? Thanks!

[Zachary Ray]

Find the perfect market. Use a some sort of calculator to run the numbers. Put everything in there including taxes. Then check the local area to see what the rents will be. Craigslist and Rentometer are great for gauging approximate rent amounts for you to charge. 

[Jody Sperling]

Any property you can profit on a flip from, you can profit on a rental from.

If you're already flipping, you already know everything you need to know.

Simply change the end result. Instead of selling a rehabbed house, market it for rent. Once it's rented, request a refinance with your lender. If you've hit a payload, you'll make money and have a rental property. If you got a vein you'll leave perhaps 3-5% equity in the house and pull the rest out.

You can even keep the rental side fairly passive since if you continue to select only deals you would flip, you'll tend to have leftover money from the deal that you can set aside as management fees, to pay a property manager.

[Adam Guard]

@Zachary Ray okay thank you. I’ll try that out and let you know!

[Adam Guard]

@Jody Sperling that sounds like it would work. I’ll have to give it a try. Do you do something similar to that?

[Tracy Streich]

Just decide to keep one of the flips.   Determine the rental price before you start the flip and don't overspend.   Think longevity like solid surfaces that don't wear out.   

[Zachary Ray]

No problem man, its not the toughest thing to learn but it does take time to fully grasp the concept. Just like flipping. Best of luck to you!

[Adam Guard]

@Tracy Streich that’s good advice, thanks Tracy!

[Stephen DeThample]

Read David Greene's book Buy, Rehab, Rent, Refinance, Repeat 

You already handle the Buy and Rehab parts which I think are the hardest pieces of the puzzle personally.

Just keep learning here, and you will succeed.

[Nathan Gesner]

Read some books. You're not going to get a good, foundational understanding by asking a generic question in a forum. Read a book that explains the general concept, gives you some basic knowledge about what makes a good investment, how to find them, how to fund them, how to manage them.

Then come back to the forum and ask specific questions about the areas you still lack understanding in. There are good books in the Biggerpockets library or you can find others on Amazon.

[Adam Guard]

@Stephen DeThample will definitely do that. The BRRRR strategy is very enticing

[Adam Guard]

@Nathan G. Your absolutely right Nathan. I’ll be reading into the new year and come back with specific questions!