After having sufficient capital to afford a down payment on a rental unit, what are the next steps that a first timer should make to evaluate buying a rental unit? Any and all advice would be much appreciated! Thanks in advance.

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Should be looking at houses in areas you are interested. Look at the cash flow you will be receiving, future outlook of the area.

1) i prepare a schedule (many templates online but I made one myself). Include things like:
-down pmt, closing costs, reno costs = total initial cash
-mortgage payment, taxes, insurance, vacancy rate (2-7%), repairs (1-5%), capex (5%), prop mgmt, etc. These percentages vary by factors such as location, condition of building, etc. If you have no idea, just start with 5% for all, or 8-10% for prop mgmt.

After all this you should have a good calc of your cash on cash return as well as cash flow per month.

2) search sale listings and cross check with Zillow rentals in that neighborhood: you should come up with a realistic estimate of your rental income. Plug everything to the calc you made in step 1.

Personally my properties have always started at around 5% CoC return and I target cities with higher appreciation (metro centers). Generally ‘lower’ neighborhoods or less desirable cities can get you better cash flow, but you’re likely to stagnate on appreciation. Neither is better than the other so just identify your investment goals and risk appetite.

Sign up for Zillow’s Landlord portal. Have found all my tenants there. Great platform and free.

You may be able to find a better return investing in something passively, with a very experienced sponsor driving the bus. I would look at Equity Multiple, Crowdstreet or Intoo. Not sure if your motivation here is just to coupon clip, or if you’re looking to establish a track record as an investor to eventually get into larger deals?

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Seeking some advice for home buying. Went under contract on a new construction back in March, was originally supposed to be ready in August but has been delayed until November. I’ve began getting quotes for mortgage rates through lenders and the best I’ve seen so far is 5.75% (excellent credit, dp at 10%) at a 60 day lock. Debating if I should test my luck with the market to see if rates will drop or if I should go ahead and lock my rate in before Rates increase even more

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Tax Senior Manager and Bowl Creator have thrown out WPF, SVOK, and AVAN recently. With these all barely above $10 (and SVOK actually temporarily below), what’s the downside to investing in these? Am I missing something? Don’t they offer you the opportunity to sell back the shares at $10 around the merge date? So max loss would be $0.12 per share on WPF (at current pricing) and $0.19 per share on AVAN?

Are there other SPAC plays that people like that seem like no brainers at these levels?

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What is the most difficult part of buying a home for the first time?

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Should I buy and rent the extra bedrooms to friends, or stay renting and put savings in stock market?

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Bucks County, PA. Depending on size of book can purchase immediately or being a longer term succession plan.

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