First Deal Advice

[David Rutledge]

Hi Everyone,

I have been studying every corner of this site for about the past month in an attempt to learn as much as I possibly can about RE investing before I take the plunge with my first deal. There is such a wealth of insightful articles, podcasts and so many experienced forum users that BP has truly become my one stop shop for building my knowledge on RE investing.

I was hoping I may be able to tap into the experience and knowledge of some of you guys about my own specific situation. After going back and forth I have decided that my strategy for my first few deals will be to buy and hold rental properties. I do not want to flip houses nor do I feel comfortable enough to start wholesaling, buying notes etc... I want to take a very conservative approach and I am in no way interested in a get rich quick type flip etc...

I want to buy a place with positive cash flow (I do not really have a specific % in mind but obviously the more cash flow the better) with the hope that appreciation over time is an added bonus. I plan to hold the property for quite a while so cash flow is the main priority but I do want to buy in a place where house values will hopefully steadily rise in the coming years.

I have heard too many horror stories about difficult tenants in D type areas so I am looking at more middle class type neighborhoods. I live in CA but I wish to invest in another state. Perhaps in Texas, Florida, Arizona, Vegas or somewhere else in the south east.

The area I am having trouble getting my head around is the process of figuring out what I should be looking for.  I have heard many times on here that you make your money when you get the property not the other way around so I understand the value of a good deal. I have about $80 000 to play with so my plan is to split that into two properties as a 25% down payment for each.

I guess my question is where/how do I start looking. Should I be asking agents to only look at foreclosures and short sales in my desired cities or can I find deals in other ways than just getting a foreclosed property? Keeping in mind that I am fine with new paint and carpet or minor repairs but I am not comfortable rehabbing an entire house. Which cities should I be looking in? duplexes or houses? 

I feel like I have the strategy I want to use down but I do not really know the next step in finding the first deal and making sure it is the RIGHT one.

If anyone has any advice or can see any potential flaws in my plan please let me know, I would really value the opinion of others among the BP community.

Thank you so much for reading I hope to hear from you soon.

David Rutledge