[mtd1523]

I have started looking for residential real estate properties with investment potential. My uncle has started helping me out, but he lives 6 hours away and is busy with his own job.

Could somebody tell me the process of what I need to do from start to finish? For example, find houses, get a loan, write a lease, find contractors...etc. I hope anybody who can help me understands what I am looking for. I want to be as prepared as possible so that everything goes smoothly and I can figure out the numbers to get good cash flow and passive income.

Thanks!

[Redbaron]

Thats a very big question. People go to school for that. First thing I would do is get a bank to say yes to me. Then with a pre appoved mortgage in hand hit the streets. I am not in real estate but I would have to think there is a great deal to know, perhaps more than can be learned from some posts to this thread. There are a lot of great books I have seen. No Money Down, Investing in Real Estate etc., Maybe you could go talk to your local bank manager about foreclosures, or make a deal with a real estate agent?

[mtd1523]

I'm just asking for the process and then after that I am going to look into each step in more detail. I understand there is a lot to know and I have been reading articles, websites, and some books about it as well.

I just want to know the process so that I can figure out what I need to do first rather than jumping around, back and forth, being unorganized.

[Redbaron]

roger.

I would have to think we have some real estate tycoons around here. Try doing a search of the forums and look through the directory. Email or PM anyone that looks like they might be able to help.

Sorry I can't help more. All I know about houses is how to live in them.

Bjorn

[Karen]

Do you want to buy apartment buildings, condo's, single family homes, fixer-uppers, property to flip?


Karen

[mtd1523]

My uncle said it is best to start with single family homes, and also small cosmetic fixer-uppers. While that was his suggestion, I also agree with him. Also, if the price is right I would go with a duplex apartment. All of this is for the long-term holding where I will probably get a property management company to do all of the work for me.

[Karen]

Keep in mind that at todays high home pricing, it is pretty hard to cash flow on a single family home right now. Rental incomes won't cover the mortgage on homes right now, as a general rule.

What area are you looking in?


Karen

[mtd1523]

The area is mainly western Pennsylvania, western-central, northern-western-central, if that makes any sense.

[mtd1523]

You said that the housing market had high prices....could you tell me where I can look, or what is an indicator of housing prices?

[Dus10]

I think that Karen is just saying that you are not going to have positive cash-flow in the near future. This is not a bad thing, imho, someone else is still contributing a large sum to your mortgage... this is called investing. You just need to look at the market, and decide if you can deal with it. Just because you cannot get passive-income today, does not mean you cannot have it next year. Find a reasonably priced property and try and get a good deal on everything (the property itself, you mortage rate, etc). Then do what you can to get some equity, then refinance, and voila (okay, maybe not voila) you have passive-income. The key is that you have to decide if you can deal with this. I have been looking into investment property for a little while, and I have only been looking into duplex and up properties... they just make more sense here, and I am looking near college campuses. That is the only way to be in a decent position in the rental market in my area. Your mileage may vary.

[Bran987]

total depends on the area

california - FORGET buying & renting single family right now

here in dallas - we can still do it all day and night

[mtd1523]

I just got back from talking to a real estate agent. They helped me out, I talked with them, went through the process with what I needed to do, and blah blah blah.

I do see that it is better to go with at least a duplex as you still get the house for the same price, but you basically get double the income from rent...so that isn't hard to see.

I'm still learning though, I learn something new everyday, every hour, who knows. But this is one thing I find interesting and I may turn this into "my business."