Table of Contents
Prologue 1
What Do You Want? 2
About Me 3
About This Book 5
Chapter 1 Why I Love Rental Properties 7
Why Do I Love Rental Properties So Much? 8
The Four Wealth Generators 11
How Much Money Does One Need to Invest in Rental Properties? 16
What About Reserves? 19
Top Five Difficulties of Rental Property Investing 20
But I Don't Want to Fix Toilets at 2:00AM! 22
Why Do So Many Rental Property Owners Fail? 23
Quitting (or Not Quitting) Your job Through Rental Properties 27
Should You Quit? 27
Wrapping it Up 32
Chapter 2 The Five Keys to Rental Property Success 33
1 Think the Right Thoughts 33
2 Study the Right Source 37
3 Picking the Right Plan 43
4 Acquire the Right Asset 48
5 Manage the Right Metrics 48
Wrapping it Up 49
Chapter 3 Four Sample Plans 51
Plan 1: How to Make $1,000,000 Through Rental Properties 52
Plan 2: Building Wealth Through Single-Family Homes 58
House Hacking 63
How to Make $100,000 Per Year Using the BRRRR Strategy 66
Wrapping it Up 71
Chapter 4 The Ten Members of Your Real Estate Team 73
1 Spouse 74
2 Mentor/Accountability Partner 77
3 Real Estate Agent 79
4 Lender(s) 85
5 Contractors and Handymen 86
6 Bookkeeper 91
7 CPA 91
8 Lawyer 92
9 Insurance Agent 93
10 Property Manager 93
Chapter 5 Analyzing a Rental Property 97
How to Analyze a Rental Property 98
What About the Rules of Thumb? 107
123 Main Street Analysis 111
Wrapping it Up 120
Chapter 6 Investing While Living in an Expensive Area 121
Are You Looking for Homes on Sale? 122
Is the Price Relative? 123
What Is Working in Your Area? 124
Long-Distance Rental Property Investing 125
Wrapping It Up 131
Chapter 7 Types of Rental Properties 133
Single-Family Homes 134
Multifamily Real Estate 137
Condos 141
Townhomes 142
REOs/Foteclosures 142
Fixer-Uppers 143
Five Questions to Ask Before Investing in a Fixer-Upper 147
Commercial Real Estate 149
Wrapping II Up 149
Chapter 8 Location, location, location! 151
Neighborhood Classes 152
Crime 155
Drugs 156
Schools 156
Jobs Versus Unemployment 157
Population Growth 157
Housing Starts and Building Permits 158
Transportation 158
Proximity to Local Businesses 158
Price-to-Rent Ratio 159
Vacancy Races 160
Property Tax and Insurance Rates 162
Wrapping it Up 163
Chapter 9 How to Find Rental Properties 165
1 The MLS 166
2 Direct Mail Marketing for Deals 170
3 Driving for Dollars 172
4 Eviction Records 172
5 BiggerPockets Marketplace 173
6 Craigslist 173
7 Wholesalers 175
8 Passion 175
Wrapping it Up 176
Chapter 10 Which Properties Make the Best Rentals? 177
Bedrooms 178
Age 178
Garage 179
Utilities 179
Lawn 179
Parking 180
Location 180
8 Problems I Look for When Shopping for Rental Properties 180
Three Problems I Avoid When Shopping for a Rental Property 189
Wrapping It Up 190
Chapter 11 Submitting Your Offer 191
How to Make an Offer 192
The Earnest Money Deposit 195
What Should the Offer Include? 198
How Much Should You Offer? 199
16 Tips for Getting Your Offer Accepted 201
Wrapping It Up 205
Chapter 12 Real Estate Negotiation 207
The Negotiation Process 208
When to Negotiate 211
13 Tips for Successful Negotiation 211
Wrapping it Up 216
Chapter 13 Financing Your Rental Property 217
All Cash 218
Conventional Loans 222
Portfolio Lenders 227
Private Lenders 229
Other Creative Methods 235
Wrapping it Up 242
Chapter 14 How to Get a Loan Approved, Guaranteed 243
Understanding How a Loan Works 244
The 12-Digit Code You Need to Get Your Loan Approved 246
Wrapping it Up 252
Chapter 15 The Due Diligence Process 253
What Is Due Diligence? 254
Document Inspection 257
Wrapping it Up 264
Chapter 16 Getting Ready to Close 265
Order Insurance 266
Setting Up Your Bank Accounts 268
Preparing Bookkeeping 270
Do I Need an LLC? 271
The Problems with an LLC 273
Final Walk-Through of the Property 276
Plan the Rehab 276
Wrapping It Up 277
Chapter 17 Managing Your Rentals (Part I) 279
Self-Management Versus Property Management 280
Business or Hobby: Getting in the Right Mindset 284
Getting a Property Ready to Rent 287
Five Ways to Find Great Tenants 288
Accepting Phone Calls 291
Showing the Property to Tenants 291
The Application Process 292
The Move-In Condition Report 299
Wrapping It Up 303
Chapter 18 Managing Your Rentals (Part II) 305
Maintenance and Repairs 306
Dealing with Difficult Tenants 311
If You Are Unhappy, Your System Is Broken 319
Chapter 19 Exit Strategies and 1031 Exchanges 321
Hold Forever 322
Seller Financing 322
Cash Out 323
The 1031 Exchange 323
1031 Exchange Rules 326
How a 1031 Exchange Can Make You Millions 331
Wrapping it Up 334
Chapter 20 Final Thoughts 335
The Five Success Principles of Rental Ownership 335
Will You Take Action? 339
Which kind of person are you? 339
