Looking into buying real eastate and renting them out long term

[Jeremy Willman]

Getting started and would love as much feedback when it comes to being successfull in buying real estate and renting it out long term.

[Darius Wade]

Hello Jeremy, thanks for getting started with BP and interacting with the community. Happy to have you here. The statement/question you asked is a very broad one that is hard to answer. The first thing I would suggest for you is to absorb as much information as you can through podcasts and the forums to help you better understand the in's and out's of real estate investing. The next and most important thing is determining exactly what you're looking for, that's for you to decide not someone else's suggestion. 

Are you looking into single family homes only, small multi families etc., how much cash do you have to deploy and what is your price range to purchase, do you want to invest locally or at a distance, what ROI are you looking to get on your investments and does the inventory in your market support that, are you looking for turn key or are you trying to force equity into the property, are you looking to house hack or are you doing a 20% down and rent it out right away.

I ask all these questions to show there is a lot you want to have squared away first. This will then allow you to be very intentional in your journey going forward which can lead to your eventual success. I hope this helps and best of luck.

[Jonathan Greene]

This is a true starting out post, but it's way too hard to answer without knowing anything else. How much research have you done? What are your finances like? What is your why behind investing in real estate? Are you prepared to be a landlord? Do you want to invest locally?

[Jeremy Willman]

Thank you! I personally am looking to do a cash out refi to buy another property. I want to build long term wealth 20 years from now. My goal is to own and rent out 7-10 properties within 5 years. Not sure if it's possible but I sure want to try. I have done some research regarding landlord responsibilities. I believe I can handle one or two on my own but then would want to transition to a property manager. This is a dream of mine and would love to make it happen. 

[Jeremy Willman]

I appreciate the feedback sir.

[Darius Wade]

Quote from @Jeremy Willman:

Thank you! I personally am looking to do a cash out refi to buy another property. I want to build long term wealth 20 years from now. My goal is to own and rent out 7-10 properties within 5 years. Not sure if it's possible but I sure want to try. I have done some research regarding landlord responsibilities. I believe I can handle one or two on my own but then would want to transition to a property manager. This is a dream of mine and would love to make it happen. 

That's a great goal to have and very achievable. I am in a similar situation with my goals and strategy. So yes continue to learn and figure out where you want to get started. The best way to do so is start by finding your local REIA and attending some events to connect with locals with similar goals.

[Nadeem Alamgir]

Hey @Jeremy Willman, Bigger Pockets is a great place to start. I would check out some local meetups and meet with as many investors as I can. Network and try to find a mentor in these groups or wherever you can to help guide you through this industry. In return, try to bring value to this person. Maybe become an agent and help them find deals or maybe they need a reliable PM , etc. You have to give to take.

This isn't the quickest and easiest way to go from a novice to an expert, but it is how many great real estate investors started.

[Alecia Loveless]

@Jeremy Willman If you invest locally and buy “nicer” properties as opposed to run down properties you will easily be able to self manage all 5-7 of your properties when you get there.

Aside from renting vacant units I only spend 10 hours a month on managing my 7 buildings and 25 units. I have a reliable handyman who takes care of most of my repairs.

If I had property management I would be paying a couple thousand dollars each month for that service, then having to still pay the PM Company’s contractors at a marked up rate for every repair.

I have simply eliminated the middleman.

About 10 of my 25 tenants pay rent electronically. I’m sure this number would be higher in a more urban setting. The rest pay by check which takes up most of my time (3-4 hours each month) depositing them. I’m not very tech savvy so I don’t deposit the checks digitally I take them to the bank.

And during my travels during the week I drive by each property to check on it. Saturday if my day isn’t too busy I drive to the two properties that are a little farther away.

Once you establish a routine and a few systems you will see it is very easy to self-manage.

[Min Zhang]

Hey Jeremy! Welcome to BiggerPockets! It is a great place to learn about real estate investing. I understand your excitement about taking the plunge into real estate investing. It's a thrilling and rewarding world, but it can also be overwhelming for newcomers. My advice would be to start small and do your research. Educate yourself on the local market, network with other investors and agents, and always have a solid plan in place before making any investments. Good luck on your journey and feel free to reach out if you ever need any guidance or advice.