Hello everyone,
My name is Jared and I am new to the forum. I have a background in Healthcare Revenue cycle. I am very analytical, goals and numbers focused. We live outside of Chicago and are preparing to purchase our first rental property. Unfortunately, we started this journey a bit late, so some of the common recommendations, like house hacking, don't make sense for us right now. My wife is a former property manager, so we have a leg up, but she is currently a fulltime mom to a wild 4 and 7 year old. In the coming years she will have much more time to dedicate to managing, but we don't want to wait. We want to jump in. Looking for any advice to ensure the first purchase goes well. In the future, we may be able to take more risks, but would like the first one to be more positioned for success.
1. Should I buy local. My local market is more expensive, but we would be present. If not local, what markets would you recommend I research?
2. For a first purchase, with very limited skills, how much rehab work is too much in order to add value? Should I avoid a rehab project and just take lower cashflow as a start?
3. How do I rise and repeat quickly? I have a down payment available for a modest purchase, but cashflow alone wouldn't replenish that quick enough to purchase again within 1-2 years.
4. How should I be using metrics to validate opportunity? I have built some spreadsheets to show cap rate, cashflow, cash on cash, expenses, total cash outlay, debt servicing, and net operating income. Am I missing anything? Are their industry benchmarks I should be set as goals for each metric?
5. Any books, articles, or podcasts you think I should start reviewing now?
Thank you for any help you can offer.
Jared
