Quote from @Radhika S.:
Hi!
I am starting out newbie, have young kids, have been a homemaker, but now want to do more for the family financially while also being available for my family. After reading & researching, I have decided to take the real estate route, read 'Rental Property Investing" and came out with the plan to buy single family homes LTR cash flow. I live in California, but being the market it is, I want to invest outside. I have garnered a 50K to get started, I am having difficulty choosing markets, although I have shortlisted it to be a 'landlord friendly state". It looks so wide and vast, I am overwhelmed and don't know where to start. I have been reading the forums out here but how should I narrow down to that one market?
I also tried biggerpockets/wheretostart, but for some reason the .xls would constantly keep opening skype files. What am I doing wrong here?
What should be my next step to narrow down and research?
I am also beginning to talk to CPAs and attorneys, but not sure What all questions I should have cleared at a minimum, to confidently take the big step.
I may be over thinking, but I think it is also the cautious me who does not want to screw up financially in my desire to help the family financially.
Hi Radhika! As a new investor, you're absolutely right to be thorough and cautious. First things first: Before diving into any market, talk to a lender to understand your financing options and get pre-approved. This will give you a clear picture of your buying power and help you set realistic expectations.
Your $50K is a great starting point, but you'll want to budget beyond just the purchase price. Make sure you've got cash reserves for closing costs (around 2-5% of the purchase price, repairs and maintenance (aim for 1-2% of property value annually), vacancy periods (budget for 3-5 months of expenses), property management (if you're not self-managing), emergency funds for unexpected repairs.
When choosing markets, look for those with stable job markets, growing population, and strong rental demand. Columbus OH checks all these boxes and the rules here are super landlord-friendly! It's why I moved from Portland OR to invest here. Happy to send over some resources on why Columbus is a great real estate market to invest in.
