Hi guys, I'm still learning about REI but want to build a plan to start towards a 2016 goal: cashflow $300/month on a buy&hold SFH or duplex.
My current plan is below (focus is on minimal action and minimal cost), with lots of bullet point questions:
1. LLC
* good for asset protection?
* which state? I assume the state I currently reside in (TX)
2. find banks willing to finance
* big banks or in-house financing? I assume it doesn't matter for my first financing and I'll just pick the best one financially
3. somehow find a deal (I assume this takes the longest)
* where to find deals? I assume the MLS, but then I need to become a certified agent. Otherwise I assume Zillow/Trulia?
* how to analyze deals? I've read a bit on BiggerPockets, but only have a general idea. I can estimate property tax, but never needed to estimate replacements or insurance.
4. due diligence, purchase, rehab if needed
* I know lots of due diligence articles I can read, but purchase and rehab should be straightforward. Am I wrong?
5. find renter
* what are good advertising strategies? I assume Craigslist/Airbnb to start
* background checks? I assume no to start, may do a quick interview and ask for 1 month deposit
* what are payment options? I assume I can setup a business account that withdraws from the renter's account. Also accept cash/checks.
6. fix mistakes in previous cycle
* are there professionals I needed? Get ability to quickly access some
* are there costs I wrongly estimated? Good to know for the future
7. rinse and repeat
I'm trying to avoid doing all of #6 (fix all mistakes) before taking any action - I need to accept failures at some point. But does this current plan sound ok? If not, feel free to suggest changes. And if you agree, maybe help me with some of the bullet point questions? Also let me know why in any case - if you feel strongly about it then convince me :)
I'm also open to a plan involving partners, but that complicates things so I'll consider it later.
Update: if you built similar plans in your past, feel free to share them! It'd also be cool to comment on them retrospectively to analyze what you think you did well and where you could have improved.