There are several good ones, but these guys have fun guests and speak in plain terms. The next thing you need to think about is if you are interested in commercial or residential. Residential is 4 units in a purchase or less. It is a different loan and valuation process. Easiest is residential to learn, but the catch is that one door one vacancy you pick up all costs. I started here, but do commercial now for risk reduction. Happy to answer questions if or recommend books if you reach out, but bigger pockets is a great first step to gain understanding.

To your questions.

Capital? I am a believer in 20% down + reserves of 6 months. This is pretty conservative, but safe.

Why rent from you instead of buy? People can't afford to buy and/or don't want to lock in. There are always renters if you are a good landlord. Referrals happen all the time for me. Most of my folks are now referring and they just ask to be next when I get an opening. I have good units at a fair cost and am responsive to repairs though.

Where do you look for your properties? Tricky on this one depends on the market. To complex to answer. However, if you are young do the BRRR strategy IMO. Buy Rehab Rent Refinance. Buy a Duplex up to a Quad. Live in it as your primary residence, getting you lower rates. Repair it yourself while renting out other units. You likely can draw out all your money and just have income. Rinse and repeat.

What kind of reserve fund do you need to have for emergency repairs and refurbishment? 6 months for me unless I see a major issue (roof, HVAC primarily)

What are your thoughts on these servicing companies who will "manage" your property for you? I require it, but others do themselves. They cost about 6-10% of your gross, mine is 8%. Worth it for me to not get a call about a broken fridge at midnight. You have extra fees on repairs, but I don't have to collect, get repairs done, evict, etc.

Hope that helps. I think it is the best way to build passive income and security. Strongly recommend it in your long run plan.


[Post edited by HokieHutch at 07/08/2020 4:01PM]