Author Topic: need help to start ..  (Read 1398 times)

Mrwannabemmm

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need help to start ..
« on: September 21, 2015, 11:56:52 AM »

I am looking to invest in rental properties but the returns on rent in my area are not high in california. ( 2400  max for 500 k investment , 1600 for 400k unit ) . Wondering if I was to start looking for properties outside of state , how to choose the areas and how to get a reliable property mgmt firm etc.

MsSindy

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Re: need help to start ..
« Reply #1 on: September 21, 2015, 12:53:38 PM »
Start doing some reading - Bigger Pockets has a wealth of real-time information - most of what you want/need to know has already been discussed there numerous times.  Your question is very broad and unrealistic for someone on this forum to give you a good, detailed answer without writing many paragraphs (well, unless they have more patience than I do!).

Buying rental property that can make a good profit is extremely hard work, even when it's in your same county - buying in another state has another whole set of risks and implications.  For example, the rental laws are different.  Finding a good discounted property before the other investors do.  Trying to fix up that property from another state is difficult.  Trusting a PM firm when you don't have a relationship with them.

Do some research and possibly come back with a specific question - or ask your question on Bigger Pockets.

iamlindoro

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Re: need help to start ..
« Reply #2 on: September 21, 2015, 10:12:13 PM »
Not to self-promote, but I wrote a post for someone in your situation here:

http://forum.mrmoneymustache.com/real-estate-and-landlording/evaluating-a-rental-property/

It covers a lot of the basics on the specifics of how to evaluate a rental property, as well as some of the conventional wisdom on what objectively makes a property "good."

Finding good property management is equal parts numerical and human skills.  My advice would be to interview a number of property managers in the markets you are considering.  Then read all of their leases, and all of their property management agreements.  Create a spreadsheet with all of their charges, costs, and policies.  You'll quickly learn who the outliers are, and what "normal" for that market is.

MsSindy gave you great advice of BiggerPockets-- I said in the thread above and I've said elsewhere, but a great way to network and become familiar with PMs is to see how they behave on BiggerPockets.  Often helpful and visible community members on BP who are in the property management business are good ones to consider.  Just start reading, and reading, and reading.  Try to understand the basics, but eventually you will need to just jump in.  Most of what you will learn will be learned by doing.