Help... First Rental Property

[Daymeond Hord]

I'm looking to buy my first rental property soon. What price range and areas should I be looking to buy in? I am also a real estate agent and have access to a couple of different MLS' in my area. I am in the Missouri and homes are pretty cheap around here.

[Cheryl Packham]

Hi Daymeond,

Congrats on taking the leap into looking for your first rental property.  Price range would greatly depend on how much capital you have available to invest and area would depend on what you are hoping to get for a return on your investment, they type of tenant you want to target, and whether you are going to self manage or hire someone else.  

Be very wary on buying "cheap" homes.  Buying undervalued homes is one thing but buying cheap home because they are cheap is a whole other thing.  While cheap homes look good upfront, you generally can't get a decent rental amount for them, however, the fixed costs are still the same as they would be for a pricier house.  

They discuss this on many of the pod casts, and if you haven't listened to those I would recommend:

https://www.biggerpockets.com/renewsblog/2015/12/1...

Good luck!