Posted by Jasonrei on January 31, 2003 at 19:46:37:
You might consider going to a couple of good mortgage brokers. Ask what they can do. The duplex idea is probably a good one. My first deal was a duplex. I mismanaged it, but at least I could kick out the worse tenant and move in myself. I work with a business partner and his first deal was also a duplex, and he’s done VERY well with it. So I’d recommend the duplex thing. When the time comes, you can move out and rent out each side. What if using owner-occupied conventional financing you could pick up one nice duplex every 18-24 months? In ten years you’d have learned a lot about rentals, and a nice net worth.
Go to local real estate investment club meetings. Might pick up a thing or two. Without knowing your goals w/ real estate can’t suggest much. If you wanna buy and lease out, I have little experience so I won’t give advice. If you wanna buy and resell:
-Learn what homes are worth in your community.
-Check out properties that need work. Make a list of repairs you’d make before selling. Price repairs.
-Find hard money lenders. Ask what they can do. Get a good breakdown of their fees.
-Get seed money. It can be your own, or a partner’s. In my area (Houston) I set aside $10,000 minimum for every house. That’s if it needs just a little work. It doesn’t feel good wondering where the money for the next payment is going to come from, or having a house sit cuz you don’t have money for carpet!
Basically, be VERY conservative, but be active. Look at lots of houses. Run the numbers over and over and over. I’m not saying analyze the numbers to death at the expense of doing anything, but don’t be in a big hurry. Better (in my opinion) to pass by 3 good deals than pick up one lousy one.