Total Newbie - Is this a good plan?

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Hello Kendra! Cash on cash return - the annual percentage return you get back on your initial investment.I think a good use of the years' time you've set before starting your investing is to get really clear on what you want to accomplish here. Understanding the lingo of real estate is very important so when you area speaking with brokers, realtors, property managers, etc, you can express yourself with clarity and assurance and you are taken seriously. Before you begin investing, you absolutely need to know what class of investments you are interested in and what kind of returns you want. The neighborhoods, demographics, economics, are all important and affect your bottom line. You need to know who the players are on your team, even if you haven't yet built one. You're going to need a realtor, a property manager if you don't plan to manage yourself, a lender, a broker for commercial deals, an attorney, an accountant. Start asking for referrals now so when the time comes you can move quickly.Start analyzing deals so you get real clear about what your goals are. Do you want a cash on cash return of 10% or is that not good enough for you? Is 100 dollars cash flow per door enough, or do you want 250 per door? No one can answer that for you as we all have different metrics we use to determine a good deal. The more deals you analyze, the more clear you criteria will become.I'd get real clear on the financing side of things as well, as I think new investors spend a lot of time on analyzing deals but not near enough time understanding the lending side of real estate. I'd recommend sitting down with residential and commercial lenders. Have them walk you through the underwriting process. Ask them what the ideal candidate for a loan looks like. Have them help you calculate your debt to income ratio. Start saving up for cash reserves. Good job on working on the credit by the way!You're on the right track. I'd suggest using the next year to really get educated about the ins and outs of investing, and getting your team members in place so that when the time comes and you find the perfect investment, you can move on it quickly.Good luck!

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Hi Kendra! Before you build a team and look at properties I'd recommend spending a decent chunk of time on your real estate education. I would start by listening to as many of the BiggerPockets podcasts as you can, reading The Book on Rental Property Investing by Brandon Turner, and checking out the webinars.

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Deals still exist in Atlanta but are very hard to find. Prices are up and the market is saturated with investors. That said, there are plenty of opportunities here if one is patient and willing to do a little work.

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Cash on Cash ROI = Return on investment in terms of cash flow back to you on your own invested cash (not total purchase price)contingencies = non-paying tenants, vacancies, major repairs (roof, appliances, HVAC, etc.) and mortgage payments that will be due no matter what while these things are playing.

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Save your money and grow your knowledge. Looks like the top of the cycle and a general bad time to get started . I recommend to wait till the next recession comes and then throw everything you got into buying the best deals you can. Save up your money and get lots of knowledge. If you must buy something now, start small, and get a small rental and learn about the process. Make sure the deal is exciting or don't buy it.

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Study real estate, finances, landlord tennat regulations till your eyes bleed. There is a ton to learn as this is a very high risk venture. You need to study not only real estate investing but also financial management and your state landlord tenant regulations. There is a lot for you to learn and those in your position have a 95% failure rate (most never start) so make studying your primary passtime for the year ahead.Once you are comfortable and can analyse a properties value and potential at a glance you are probably ready to consider starting. Assuming you have saved the required deposit, and reserve funds and have cleared all your other bad debts. You need cash to invest and a high level of risk tolerance.

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@Kendra Gaines it can't hurt to start speaking with some realtors who can help you identify areas and price ranges for what you are looking for. Definitely network with one or two mortgage brokers, especially if you are looking to go FHA. Those two members are a great start and can help guide you.As a suggestion, once you have your price point that you're approved for, stick to that, as well as your numbers on a deal! =)

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thanks so much for this. im also interested in real estate in atlanta -- actually going to check it out end of this month. i've considered the move. how's the biz down there?

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do you mind explaining the bold parts for a total newb? lol

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I was at a meetup in Newark yesterday night and ran into someone who purchased his first investment in safer area of Newark! 30% cash on cash ROI. So numbers do make sense if you make effort (this guy moved from Manhattan to Newark so he can make investment). If you buy something, make sure you're ready for contingencies!Being on biggerpockets is good start! Inspiration is good but inspiration with action is much better!