All Forum Posts by: Account Closed

1. Make sure your credit is solid. 740+ solid
2. Have the rest of your finances clean. No debt, 6 months reserves
3. Understand the math. Cap rate, ROI, NOI etc. Be realistic about costs
4. Become handy. If you do a rehab, more you do yourself, less it will cost. This only applies if you can do it as well as a pro and as fast. I dont mean major stuff but atleast painting, landscaping etc.

Its great you are thinking this way at a young age..Good luck

Why do you need a PM if your rental property is only one mile from your home? I would think all you need is a good handyman on speed dial! Screening applicants is not hard. You can do the same process the PM does, credit check, rental history, call previous landlord etc. I'd save the $80 bux/month and your maintenance costs will be lower too.

I use PMS but only for out of state rentals. Most people who have local properties do it themselves and I hear no major complaints.

A rule of life in general is that delaying action very rarely works in your favor.

You have a job now and can qualify for a loan. No guarantees that you will be employed in 3 years. You can find a home in your price range now. No guarantee that prices wont shoot up. Interest rates now are at an all time low. No guarantee that they will stay that way.

The ONLY calculation that matters is the one that applies to the present. So, in short, my advice is JUST DO IT!

Doing any analysis on "average" and "median" numbers is completely meaningless IMHO. You have to look at each deal on its own merit. The general media is full of silly articles and lists like this and a serious investor should pay no heed to such nonsense!