Resources for first time home buyers - long distance investment property edition.
May 30, 2012 8:28 AM Subscribe
Please point me to honest, helpful resources for first time home buyers. I would like to purchase a property in the US with cash and then rent it out. Can you please point me to resources that can help me learn the best way to do this while managing some of the risk?
posted by anonymous to Work & Money (6 answers total) 6 users marked this as a favorite
I grew up in Florida and still have some close family there. There are many foreclosed homes in nice neighborhoods that I could afford to purchase with cash. I would like to buy one. Although I am a US citizen I do not currently live in the States.
I have done some basic internet research and found that there are such things as buyer's real estate agents that specialise in foreclosures and the unique problems associated with them. I have also found that there are management companies who will manage your rental investment property. I would like to find and purchase a house using a buyer's agent and then rent it out using a management company.
I have never purchased a property before and I am very undereducated about this process so would like to read some articles, books, advice, something that covers in detail the whole process along with common pitfalls and ways to avoid them. However, what I've been able to find so far is either (1) pretty vague or not in-depth, (2) scammy get-rich-quick sounding or (3) advice for getting your first mortgage (I do not want a mortgage).
I am in my 20s. My long term goal is to build up a portfolio of investments that will allow me to retire at some point in my 50s or 60s. I have cash and these particular properties seem very undervalued to me, so it looks like a good investment - certainly better than the 1.2% you can get in a term deposit / CD these days. I have no intention of ever living at this house. I will probably hold on to it for awhile although if I can sell it in a few years for a profit, I wouldn't be averse to doing that and then reinvesting the money elsewhere (another property or whatever investments are looking good at that time).
So, what resources - books, articles, white papers, websites - can you point me to for a good education in all of this? Topics that such a resource might address: how much should all the additional expenses cost, how to get a reputable agent, how to properly research a prospective property, what is the step-by-step process I should expect, how to get proper insurance that will cover me in case of nightmare tenants or negligent property managers, etc.
Throwaway email if needed: email@example.com