All Forum Posts by: Nathan Patterson

I think it comes down to your market, if your in a market where a deal hits the market and is scooped quickly. Then, I feel, having pre-approval would help the sellers go with you since your a stepped ahead of some other buyers. Unless you are doing HML, then finding the deal is the best bet, but I would say start a relationship with an HML so when a deal comes along you can jump quickly.

Figure out your comps, go to your favorite home improvement store, and figure out, roughly, the rehab costs.  If you need to change the flooring, get a quote for what it would be to replace the flooring, the cabinets etc.  That will help you get a better idea of rehab for your future investments and for this one as well.  

Ask your friends, family, etc for recommendations on contractors, I find that is a good way to find reliable contractors.  Next steps, figure out the rehab costs, holding costs, rough time frame for how long the rehab will take place, get your comps etc.  

Good luck

Have you thought about looking up already written leases?  I don't have any experience in writing them but, it might lead to some good leads or save you time.  This is how some of the smaller landlords I've talked to have done it.  Find a decent one, then modify to fit your needs specifically.  Also, WELCOME.

Good luck

What about capital expense and possible property management in the future?

So you have figured you will loose $900+ a month fully rented.  I don't think that is a good deal.  To me, even the pay down in equity wouldn't be worth it.  Unless the rents for this property are drastically under valued.  I would say keep looking, keep evaluating and keep an eye out for something better.  Don't let your heart make you purchase a deal, use your head. 

As others have mentioned down payment and closing costs.  I'd like to chime in and say to not forget about having a fall back fund for any unexpected repairs in the coming months after purchase and repairs are complete.  What happens if the water heater goes out after tenants move in and you need to hire it out to repair it the first month of renting.  Make sure you have some set back for those occurrences.  

Maybe even go as far to figure out what general repairs cost so you can get an idea of how much to set back.  

I've owned one before, it was a small hand powered one but I've also rented gas powered ones.  it is fairly easy to do, nothing that requires too much know how.  You can watch youtube videos on how to do it if need be.  Never thought about doing it in between tenants, guess it wouldn't hurt to do.  

Good job with keeping on the renovations.  Have you been able to renovate the other units?  Any photos?  Keep doing what your doing and tenants will brag about their place. 

You could also see if your town/county has a "Real Estate for Rent" FB page.  Might be under some other name.  My town has one and anyone part of the FB group can post up houses for sales or places for rent.  Not sure how the potential tenants are but you could reach a lot of people. 

Welcome!,  I'm not sure how large your current house is and or if you are living alone or not.  But..if you are living alone, why not rent out the extra rooms?  Will add an additional stream of revenue and will get you used to managing tenants.  Just a thought, what part of Mississippi are you from?  I'm from NE Mississippi myself.