Tips for buying first property!

[Alejandro De Anda]

Hey! I'm a young professional new to the Omaha area. I'm Looking to buy a house hack in about 10 months. Specifically a duplex in the North Omaha area. By that time I will have about $10,000 - $13,000 saved up, and a good credit score. I'm Looking to get an FHA loan.

I want to hear people's opinion on what I should do to prepare myself to be in the best position to achieve my goal of buying a duplex in 10 months?  

[Patricia Steiner]

I'm not a fan of FHA; there are less expensive options. I recommend:

1.  Finding a realtor who works with investors in your market; as a buyer, you pay no commissions so why not build bench strength.  

2. While you're still months away, have your realtor find you a 3% down with closing costs paid by lender type of financing that are available if you claim the property as your residence.  

3.  Also, have the realtor pull you contender properties now and the market rent they command.  Complete the analysis process on those "sample" properties so you can determine exactly what price point, property condition, and market best fits your investment plan when you're ready to pull the trigger.  

3.  Learn the Landlord/Tenant Law for your state as well as have a solid rental contract ready to go that includes the tenant requirement to carry Renter's Insurance with added additional insured (landlord).  

4.  Work on process:  how will you screen tenants, how will you find tenants, pre-occupancy inspection with tenant (photos taken), security deposit and other deposit requirements (will you allow pet?  How many occupants?), how will maintenance requests be made by tenants (you don't want calls/texts!), payment process for tenant, when will you inspect the property during occupancy in accordance with landlord/tenant laws, how will the security deposit be held...

The better prepared you are BEFORE acquiring the property, the faster you can hit the ground running and start earning a return.  Real Estate is a business and those who treat it like a sideline get sideswiped.  Hope this helps and I look forward to hearing on your first acquisition in 10 months!