I am wanting to start investing in real estate in the new year… I’m using this month to read up on it and familiarize myself with it. I am a true beginner and wanted to ask for any tips, tricks, advice, books, videos, magazines, podcasts, etc to start? Please let me know!
Are you going to be involved with tenant management? If so, you will quickly see how big/small your heart is. That tenant type is one unexpected expense away from missing rent (ie, car needs repairs or family/friends need money). If you dont work with them, that pretty much means they are getting evicted.
The property is going to get beat up badly, if it's not already. They were made cheap and they break easily. And since these Tenants are fearful of eviction if they complain about property damage, they usually stay quiet about it. Which means you will walk in on Tenants living in terrible, terrible conditions.
The margins of low-income renting are good, but you will be spending a good amount of time and resources on evictions and repairs. If you can get a good amount of Tenants from the voucher programs, that would be ideal.
Also, add water monitors that send water usage to you. That way, you can immediate turn them off when a pipe bursts.