North Carolina Newbie - Seeking Advice

[Charles Murray]

Hi all! New to both BP and RE. I'm from Raleigh, NC and am currently in self-education mode (lots of books, podcasts, and mentor seeking), but planning to explore my first deal soon. 

I have a full-time job with a marketing technology company in the area, but have a strong interest in pursuing RE investing as a future additional stream of income. Freedom is the real reason I seek true financial independence, and I'm willing to work for it. 

I plan to start with a single-family buy-and-hold rental. My goal is to own five cash-flowing properties in the next five years. I then want to expand to multi-family and potentially commercial investments, scaling from there. 

I'm looking for advice on analyzing my first deal. 

How does one accurately estimate expenses to ensure positive cash flow? Are expenses primarily estimated from gathering info from the seller combined with my personal discoveries of the property? Is there a comprehensive list of expenses to consider to ensure I don't miss anything (taxes, insurance, fixes, etc...) when calculating rent to charge? 

Open to any/all guidance here. Thanks in advance!

[Paul Timmins]

@Charles Murray

A quick rule of thumb is expenses should be 35% of gross income.

Go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

Paul