I was like you several years ago, so it's good to see more young guns taking their first step into real estate investing, and specifically, value-add investing as you are describing.The first thing I would recommend to you, or to anybody, is FIND A WAY TO ACQUIRE A DISTRESSED PROPERTY WITH CASH/HML.

That seems crazy to me.Not the end of the world you just factor that into your offer for the distressed asset. and those that don't wont make as much.. this is becoming about as toothless of rent control  as I have seen.. no big deal

Hey all,A quick background - I purchased a 4 unit property in the Oakland, CA area that was distressed and severely under rent.

It's an exciting first step, but also a little daunting, given that I've never closed on a deal before.This would potentially be an off-market deal, but the seller isn't motivated by any financial distress--he's just looking to start unwinding his portfolio.   

This means working with an investor friendly agent like me to identify foreclosures/distressed homes to buy and purchasing one with the intent to owner occupy for at least 1 year.

I'd pay cash for a distressed multi-family and use the BRRRR method

@Cody Thomas I'm looking to acquire and rehab distressed properties and utilize the BRRRR method to set it up as a rental.

You will be stuck with the property for longer than you intended if you do not do the work to identify a buyer while you complete the other steps.There are lots of buyers out there, but everyone has their own goals and characteristics they look for in distressed assets.

Even for a turnkey property - where you give up the potential benefit of buying distressed and making money by forcing equity in exchange for someone else doing all the legwork - you could get 16-22% returns in the first year alone if you leverage your capital with a standard mortgage, that extra bump is your tenants building your equity.

I hunt for off market, distressed properties.