8 Steps To buying your 1st rental property in 2024!

Are you thinking about jumping into the world of rental property investing? Whether you’re a seasoned investor or just getting started, navigating the complexities of real estate can feel overwhelming at times.  Hi, I’m Dustin Boudreaux, and I’ve been where you are. Over the last three years, I’ve built a portfolio of over 120 properties, all without prior experience, a team, or established connections. In this article, I’ll share with you eight crucial insights I wish I had when I first ventured into the world of rental property investing. So, if you’re ready to embark on this exciting journey, let’s dive in and unlock the keys to successful real estate investment.

1. Understanding What You Want to Invest In

One of the greatest things about the real estate investing world is that there are so many different ways that you can make money, and the downside is that there are so many different avenues you can go. If you’ve ever heard of shiny object syndrome, that’s a real thing, especially in real estate investing. There are tons of asset classes, different strategies, and many different ways you can go. For me, I started with single-family homes and small multi-family, which allowed me to understand the game and get into these properties to gain some experience. I would recommend you pick a lane and start there. You don’t have to stick to just one type of property forever. But if you start with one asset class, you can learn all about it, get really good at it, and then try something new later on if you want to. This is where you would define your buy box.

2. Where Do You Want to Buy These Properties?

Are you planning to invest close to home, where you’re familiar with the area? Or are you thinking of investing in towns or even states far away? It’s a big decision because when you pick a place to invest, you need to understand how the market works there. You’ll want to know things like how much houses typically sell for and which neighborhoods are the most desirable. It’s also important to know which areas to avoid. Understanding all of this is really important when you’re considering buying a rental property.

3. Understanding the Numbers

There are probably two things I think are most important when getting started in real estate investing, one is understanding how to analyze numbers and what makes a great deal. The other piece we will get there in a second. Knowing how much you can afford to pay for a rental property, how much rent you can get, and what your expenses will be are all really important things to understand before you decide to buy a property. If you’d like my FREE rental property calculator with a video explanation on how to use it and where to find the info needed, go HERE. It’s definitely a tool I wish I had when getting started to explain how to look at all the numbers and where to find the important information about a property.

4. How Will You Buy These Deals?

That’s the other piece of information I think is probably the most important. How to run numbers on a property and how will you buy it? Most of the time you’ll probably be looking to use a bank. If you have a W-2 job, you probably have a superpower that you may not be aware of. Banks love W-2 money because it’s easy to understand and very simple to prove that income. So if you have that you may have a leg up depending on how you decide to finance your investments. I use commercial loans, and they’ve been a big help for me to grow fast. They don’t have as much red tape as government loans, like FHA, so it’s easier to scale quickly. And the best part? With commercial loans, there’s no limit to how many deals you can buy! I recommend checking them out and paying attention to small local banks in your community. They can do things and come up with creative solutions that big banks may not even consider.

5. How Are You Going to Manage This Property Once You Buy It?

Will you use a professional property management company or self-manage them? Chances are if you are looking to buy rental property you’re not doing it to buy yourself another job. You’re probably looking at this to create another stream of income, leave your job, or create wealth for your family. And if you’re doing that I would encourage you to seriously think about using a professional property management company. This is something I wish I would’ve done much sooner when I got started buying properties. I self-managed along with my wife for several months before we brought in professional property management. It was probably one of the best decisions we made to use professional help because this alleviated us from having to deal with the late-night calls, fixing toilets, screening tenants, and collecting rent. I look at myself as the asset manager for the business. I find the deals, get them financed, get them rehabbed if needed, and then hand them over to my property manager. They handle all of the day. to day management and run that part of the business. So unless you have property management experience or it’s something you’re really excited to do chances are you may want to look the professional property management route and save yourself a lot of headache.

6. You Will Need a Team

I learned after buying a few rentals that real estate investing is very much a team sport. You cannot, and will not do it on your own. The key members of a great real estate team are the real estate agent, a wholesaler, your banker, a title attorney, an insurance broker, and your construction team if you’re looking to rehab properties. They play a big part in your success in this business. I don’t want you to get overwhelmed, you do not have to have your whole team in place before you start buying property. However, I would encourage you to start with maybe one person on that team. Many times they can often lead you to many other folks and help you through referrals and get you set up with the other people that you will need. If you can find a real estate agent who’s well-connected in your market, many times they will be able to help assemble your team. I wouldn’t recommend just any agent though. If you can find someone that specializes in real estate investing and understands that world you can go much quicker and probably find your team faster. Looking at deals through the lens of an investment is much different than looking at a property that you will buy for your family to live in. I encourage you to find an agent that specializes in rental property investing.

7. Begin With the End in Mind When You Buy Rental Property

This is definitely a long-term investment, so don’t expect to become rich overnight. However, overtime you can see the benefits of compounding money and build a profitable portfolio. It’s like planting seeds and watching them grow over time. With patience and smart decisions, you can achieve financial security and create a lasting source of income for yourself and your family. Remember, success in real estate investing often comes from steady, consistent efforts rather than quick gains. So stay focused on your goals and keep nurturing your investments for the long haul.

8. Understand Your Why

Finally, number eight is probably the most important on the list. Why? Why are you looking to buy a rental property? You might have heard the saying, “It’s not easy, but it’s simple.” This also applies to buying rental property. Sometimes things won’t go as planned, and that can be frustrating. Some challenges might be out of your control. Remembering why you started can help you push through tough times. So take a moment to think about your reasons for doing this. It can give you the motivation you need to keep going.

As we wrap up, I hope you’ve found these insights helpful as you embark on your journey into rental property investing. Remember, success in this field comes from understanding the game, building a solid team, and staying focused on your long-term goals. If you’re ready to take the next step and crunch the numbers for your potential investments, don’t forget to grab my FREE rental property calculator. Click HERE to get instant access and make informed decisions about your rental property investments. Here’s to your success in the exciting world of rental property investing!

Check out the video version of this article! 

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