@Kiel Martin
I think @Linda S advice is spot on, My partner and I are doing a combination of a few of these strategies. My 2 cents is no matter what way brings you in to real estate.. stick with real estate. Learn, pay attention to what's working and not, pivot when needed and keep people in your circle that will teach you ( what to do and not to do). Doesn't matter how good you are or think you are find others to aspire after and "throw down the rope" to others.
This has strayed in many directions from the original post so I figured I'd just try to be helpful in general. RE changed my life for the better and I hope you hit your goals as well.
These are some lessons learned from my 10 doors/2 years investing/10 years rehabbing properties in your price range.
-Attorney, I have had multiple times where our 28 page operating agreement drafted by an attorney has been a blessing. We have a great partnership but without a guide/clearly defined roles, lines could blur.
-For these lower cost/d class properties multifamily has been our key to success. It's amazing how a 4 unit's cash flow can carry any vacancies/turnovers/unexpected costs.
-Be Relentless, not ruthless. I spent Superbowl with a Roto-Rooter kid as ***t exploded from the bottom of a stack in the basement of a duplex. Renovations will cost more than expected, take longer than you want, and until you've owned/operated rentals for a long time you'll still be learning, even then surprises will still have you feeling like a newbie. Let your new tenants in your new property know up front that they are your first tenant in this property, it's unlikely you fixed every single thing possible. You haven't lived there so things will come up from day and day out use and you'll fix them when they do.
- Encourage communication (from the start) with your tenants. If they're scared to tell you of a leak, a bug they saw or some other problem at the property because your going to get mad or charge them then the problem gets worse (more expensive).
-Sharpen your tenant screening skills, then sharpen them again.
- always take care of your tenants, but especially the good ones. Give people a place they're not ashamed to live in. I don't say "my property", I say "your residence". This is a cash flow game and tenants paying rent is your cash flow. I will help my tenants raise their credit scores, teach them financial literacy basics and ideally help them move on to home ownership. ( I grew up in poverty and already do this with my spare time through a non profit..) A $50 upgrade or used ac unit for a tenants kids bedroom because they can't afford it and you know the kids are sleeping in the living room where it's cooler.. can go a long way in tenant relations/retention while not necessarily breaking your bank. (Before this post catches hell, this is a business not a non-profit.. That example is EXTREMELY situational. Make sure your comfortable with your ability to separate emotion from the business. Doesn't matter what area of life, some people are Takers and will take advantage of anything.)
-This is a cash flow game and tenants paying rent is your cash flow). As someone earlier said, "you can't get a mortgage on these properties" while that's not necessarily true and also not your "game plan anyways" keep your mind open. Things change, always do. I didn't want debt/leverage at first, now I can't wait to do what I've been doing but 10x with appropriate leverage as my skills/network and goals grow.
-Lastly, Be Creative. Opportunity is everywhere. I rent out a vacant divided duplex basement as extra storage to one of the tenants. We include utilities/wifi/laundry in another property and do very well. Hire neighbors for yard work. Build relationships/be courteous to neighbors. Neighbors can see trends you can't see..
Best of luck on your Journey!! Keep getting educated and building relationships!
-Sterling
