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4 easy steps to buy your first rental in 90 days
And make $800/mo in cash flow
Diego Corzo
January 06, 2024
Today, I’m going to share the exact 5-step playbook I used to buy my first property within only 4 months of learning it.
It’s how one FI Rookie mastermind member went from 0 properties to $800/mo in cash flow in just 90 days. And for just $18,000 out of pocket.
It’s not magic. It’s strategy. And it’s simple.
One Market
One Team
One Strategy
One Buy Box
All designed to help you do one thing…
Create cash flow and build a foundation generational wealth.
Let’s dive in.
Step 1: Define Your Market
It’s helpful to focus on a goal of either cash-flow or appreciation.
Some markets, like Austin or Seattle, are appreciation plays. They won’t cash-flow as traditional long-term rentals.
We prefer cash flow markets for new investors because cash is oxygen. As long as you have enough cash flow, you can survive.
And we typically suggest a 10% cash-on-cash return minimum.
If you want cash flow, we suggest the following markets:
Augusta, GA
Portland, ME
Cincinnati, OH
The key is to get crystal clear on where you want to invest.
And don’t over think it. There’s no “best market”. Markets vary down to the street.
It’s more important to pick and stick with one at first.
Step 2: Specify Your Buy Box
Once you get specific about which market you’ll invest in, you will create a buy box around what’s important to you and your investment.
Bedroom/bathroom count
Desired square footage
10% cash-on-cash return or better
Any other features relevant to your investment strategy
Once you know what you’re looking for, you can start scouting Zillow and Redfin.
It’s important to know what you’re looking for first before getting overwhelmed by all of the options online.
For the Austin market, my buy box for House Hacking is a 4 bedroom, 3 bath, and a minimum 2,500 square feet.
Because I have such strict criteria in this buy box,I know I’ll cash flow on Day 1.
Step 3: Build Your Team
Your team will consist of your lender, agent, and a handyman.
(It could also be a contractor if you are looking for a rehab project, or a cleaner if you are doing a short-term rental.)
The first part is to get pre-qualified for a lender. These are often banks or credit unions that will give you a loan for a home.
To get a pre-approval, you’ll send them documents such as
Credit history
Employment history
Bank statements
Credit card statements, etc.
These documents tell the lender how much they can loan you.
Assuming a lender is willing to lend to you, they’ll issue you a pre-approval, stating how much they’re willing to loan you. This tells your agent and the seller that you’re likely to secure financing for your offer.
This pre-approval will help your agent know what price point to look for too.
Your agent will send you listings that match your buy box. They’ll help facilitate the buying process and show you homes, among other things.
To find an agent, it’s best to ask your network. Talk to other investors you know in the area or attend local meet ups. You can also search the BiggerPockets forums for realtors in the area or look on social media.
If you are looking for an agent in your market, feel free to reply back to this email and ask me. Ward or I will see if we have a connection in your market to introduce you.
A great agent will be able to refer you to anyone else you need through the buying process, like a cleaner, handyman, contractor, etc.
Step 4: Analyze 1 Deal Every Day
For 30 straight days.
This strategy, just one deal per day, doesn’t overwhelm you. It’s not like you have to commit 4 hours per day to analyze hundreds of deals.
The more you build the habit of regularly analyzing deals, the better you get at it and the faster you can analyze them.
And by studying your market daily, you’ll start to figure out what is realistic in terms of expenses, revenue, rental demand, etc.
Most of the deals you analyze will not be good deals. Don’t let that prevent you from continuing to analyze a deal a day. When a good deal comes across your desk, you’ll know.
Step 5: Make Offers
By analyzing deals regularly, you’ll eventually find one that works. That’s when you need to pounce.
But just because it works doesn’t mean you have to overpay. In fact, it’s crucial to offer less than you think it’s worth so if the seller accepts your offer, you instantly build equity and increase your net worth on the purchase.
You make your money when you buy, not when you sell
Be ok with sending low-ball offers. You never know if someone is in a situation where they just need to sell and will take less than asking.
Our standard is to make 5 offers per month MINIMUM.
That means you’ll be making offers every week. It’s all about taking action once you have the right plan in place.
It took me 4 months to buy my first rental because I followed this exact sequence.
And now we have over 16 doors purchased by our rookies in the last 12 months.
If you’re looking to buy your first property in 2024, you might be interested in joining our FI Rookie Mastermind where we’ll help you get under contract.
However, if you are looking buy your first property in the first HALF of 2024, you will DEFINITELY be interested in our FI Rookie Mastermind.
You’ll get weekly coaching calls to help you buy your first rental property (and scale), you’ll get exact blueprint to start earning cash flow from your rentals, and connect you with dozens of other like-minded investors.
More importantly than all of this, is the air and ground approach.
On the ground, we’ll work with you 1 on 1 to make sure you make a good investment. We will make sure your deal makes sense before you buy.
In the air, we’ll grow your network and connect you with other investors so you will see what’s possible. You’ll meet and interact with people your age who are worth millions already. It’ll completely change your view of what you can achieve.
If you want accountability and a community where buying rental properties is the norm, then hit reply and let’s talk!
We are only accepting 5 new students and are extremely careful with our core-values and culture. So if this is exactly what you’ve been looking for, reply back to this email saying you’re interested in FI Rookie!
Best,
Diego
6 more ways to keep learning with FI Investors:
Join 50+ investors in our masterminds:
To get your 1st property in 90 days, apply to our Rookie Mastermind
If you have multiple properties and want to scale, join hundreds of other FI Investors in our Elite Mastermind
Free Educational Email Courses:
6 Keys to Financial Independence - Escape The Rat Race, Earn Passionate Income, & Build Generational Wealth (And actually enjoy your money before you're 65).
Achieve Wealth Your Way - A Roadmap to setting and hitting your financial goals so you can become a millionaire investor, scale your real estate portfolio, and live your life on your terms.
ATX House Hack Starter Pack - Get your first house hack in Austin, TX with step-by-step instruction for financing, finding your submarket, and analyzing deals. Plus, we give you contacts to start building your team from Day 1!