Where To Start?

[Casey Wilkening]

To start out buying for investment, what do you look for? I was thinking of simply finding residential properties in our area that are listed under a certain price per square foot dollar amount. Then, go in and cosmeticallly clean up the property and re-list.

Or, do the same above but instead of re-listing, rent/lease the property out for a minimum of 12 mons, preferably 24, and then sell.

What would you advise?

[Dan Auito]

To start out buying for investment, what do you look for? I was thinking of simply finding residential properties in our area that are listed under a certain price per square foot dollar amount. Then, go in and cosmeticallly clean up the property and re-list.

Or, do the same above but instead of re-listing, rent/lease the property out for a minimum of 12 mons, preferably 24, and then sell.

What would you advise?

Casey, while I was in Clearwater I bought cosmetically distressed tri's and fourplexes, and sytematically rented them out while tenant shuffling when a new unit was remodelled, over the course of about a year the properties would be totally tweeked and rented to good tenants with leases in place that reflected current market rents being achieved.

I would have and should have kept them as they where appreciating cash flowers but was being transferred so sold out making on average about $50,000 on each deal as a profit.

If you're going to be staying in the area, I dvise keeping them longer and using newly acquired equity lines obtained from subsequent appraisals after rehabbed to buy more.

The key to real wealth is in buying and holding for at least 15 years!

[Nancy (MI)]

Casey, if you are new to the business there is a lot more to just investing in property and being a landlord until the right moment and then flip it. Many newbies make the mistake of just jumping into being a Landlord without studying the laws of their states or the city ordinances of where their properties are located.

Remember, your idea sounds sweet, but choosing the right Tenant is crucial more so in your case since you are thinking of flipping it as well.

Dan made a good point (As always. Who can top Dan!), that keeping the property will gain you more money in the long run, but, are you ready to be a Landlord?

Just some thoughts to ponder.

Nancy Neville :SM088:

[Dan Auito]

Casey, if you are new to the business there is a lot more to just investing in property and being a landlord until the right moment and then flip it. Many newbies make the mistake of just jumping into being a Landlord without studying the laws of their states or the city ordinances of where their properties are located.

Remember, your idea sounds sweet, but choosing the right Tenant is crucial more so in your case since you are thinking of flipping it as well.

Dan made a good point (As always. Who can top Dan!), that keeping the property will gain you more money in the long run, but, are you ready to be a Landlord?

Just some thoughts to ponder.

Nancy Neville :SM088:

Casey, you can also go to the free gifts section of this site and download the file, labeled "looking inside your tenants minds" for further insight into landlord issues. Take heed to Nancy's most excellent advice about being familier with your states landlord/tenant laws. www.mrlandlord.com has the full skinny on your states regs. Hop on over and download those as well. Dan :SM023:

[Aldo]

Though our reasons/circumstances may be differerent, I began much as you are considering. By choice, I began investing in some inner-city properties where I'd get the proverbial Baptism by Fire. Sure, my income was great, but so was my outgo. Then a mentor convinced me that owning rental property is truly a business - not a hobby or a means to supplement my income. I mean, it's a business not unlike Sears or General Motors or even your local medical clinc. Smaller scale, obviously, but a business nonetheless. Now I ask you, would you allow someone at that local medical clinic perform surgery on you without having gone to Doctor School? You need to learn your business before opening shop. I admire your ambition, but you need to know what you will be doing before attempting to do it.

[Dan Auito]

Welcome to the university of Aldo! Schools in session. Aldo please layout the curriculum for our new students.
Step #1 :huh:
Stand by folks the shualin priest of land lords is about to dispense wisdom upon you! :praise:

[Aldo]

Sorry, I couldn't get into the University of Aldo. Guess it had something to do with the 20-page entrance exam. Anyway, I ended up at Whatsamatta U.

[Dan Auito]

Of all the replies of Aldo. I can only wonder? How does he do that :SM003: :xxrotflma :SM057:

[Nancy (MI)]

Well as much as I try to help someone on this sight, I can't. Me no no notin when it comes to buying and financing. But just wanted you all to know that I think you're both funnier than heck and I love reading whatsamatta U's answers as well as comeonguysgivemananswer Dan!

:SM122: you're touching me!