Advice on starting portfolio

[Stanley Clervil]

Good afternoon, my name is Stanley. It’s a pleasure to join this platform. I’ve taken a couple of days to navigate around, and I think it’s about time I write my first post with one of the questions I have in mind.

I have zero experience in the rental property business, but I am eager to learn. I’m located in Pembroke Pines, Florida. To start my portfolio, I intend to buy a property in my area to retire my mother from New York. She would become my tenant, and I am targeting a 2-bedroom, 2-bath townhome if possible. Her retirement income would be used to cover the mortgage.

I hope this gives you an idea of my plan. Regarding financing, do you have any advice on how to proceed? Can her status and credit be of help as well?

Thanks in advance

[Jaycee Greene]

Hey @Stanley Clervil, welcome to the BP Forum! Do you have an idea of the purchase price that fits your budget and/or what your mother is able to pay in rent? Are you looking for something that's turn-key or are you willing to purchase a fixer-upper?

[Greg Kasmer]

Stanley - I would suggest that you go have 3-5 conversations with lenders and understand how much they are willing to lend to you given your financial situation. They will likely count your potential rent as part of their analysis and should give you a good idea of how much you could "buy" based on your situation. After that you'll want to see what sub-market/zip code might make sense given the relative rent/price ratios. Although you plan on having your mother live in the home to start you'll want to assess the home using the current rental rates and values in the area. Let me know if you have any questions!