1st time rental property investor looking for advice

[Ruark Adam Barrientos]

This is my wife and I’s 1st time purchasing rental property. I’m in the Marine Corps stationed in Illinois, and my wife is a teacher. We’re looking for rental property in Wisconsin or Indiana. We’ve bought and sold a house in fishers Indiana so we feel comfortable in the Indianapolis area but we’re not too familiar with the Wisconsin area. Consider us sponges looking to soak up any and all advice for 1st time rental property purchasers preferably in those areas. Any helpful resources or local personnel that work or are familiar with those areas would be helpful as well. We’re not expecting A step by step guidebooks or anything but any helpful tips would be more than appreciated. Look forward to chatting with you guys!

[Khalid Bryan]

I got you. 

1) If its occupied ask for the last 6 months of tenant payment history during your inspection period

2) Even if its rented, run your own rental comps

3) Check demographics, If its a 4plex of studios, but demographics show the area is mostly large families, reconsider.

4) Never buy with future numbers

5) ask tenants if there are any issues theyve been waiting a long time to get fixed.

6) always do a full paid inspection

7) if units are vacant, check average market turn around times.

8) focus on your current cap rate when buyer. the riskier the deal, the more of a return you want.My gauge is 6% for smooth sailing-13%+ on an iffy property or area.

9) Be strict with your management. Have systems and stick to them. Enforce late fees.

10) never act on emotion. (never take sob stories, never buy because its pretty, remember this is for income, not you to live in. Dont overthink it.