Allow kids – Many landlords do allow kids in their properties, but at the same time one would not believe how many don’t. A property owner should be encouraging families to live in their homes, not discouraging them. It is much harder for a family to pack up and leave than a single person. Keep this in mind, as families tend to stay longer than singles.
Roger’s secret weapon was that he didn’t care whether he purchased the property or not. In fact when property investing he never gets emotionally involved. He told me he’ll make an offer on a property, not caring whether he owns the real estate. This is a secret weapon of many accomplished property investors-thought at times it can be difficult to put in practice.
Another scenario that happens often someone has some spare cash, endowment matures or they receive some form of inheritance. They also have a builder mate and together they decide to invest in a do me up property. Something they can add value to (in principal this is a sound approach).
The way to do this is to wait until after the tax sale. The properties that actually sold at tax sale tell you two things: first, that they were nice enough for someone to bid on, and second, that they probably don’t have a mortgage. Mortgage companies don’t let mortgage property make it all the way to tax sale. They pay off the taxes in the meantime, and foreclose themselves.
My friend Lee was referred to Jane Doe by one of his investor clients; her carpenter had just quit and left her in the middle of an unfinished renovation on two new 1 bedroom basement apartments. She was visibly upset, stressed out and running out of money really quickly, in what she referred to as “an endless money pit”. As mentioned, this was her very first real estate investment; she had no previous experience of renovation projects first hand. To her, this experience was supposed to be easy, fun, and trouble free . after all, she was supposed to make more money for herself than she was making in the stock market and in mutual funds, right?
For example, your home may be worth 0,000 with a loan of 0,000. You have 20%25 equity in the property. Some investors will feel ready to buy their first investment property at this point. Others may prefer to pay off more of their loan, before they purchase their first investment property. What do you feel comfortable with?
Less competitors. Given that they lack specialized knowledge and lack mindset, you will find fewer people out doing multifamily deals than single family deals.
Avoid attending the tax sale. Too many bidders means not enough good deals. You also have to buy houses for back tax sign unseen, if you buy at tax sale. This is far too risky for anyone – let alone a beginner.