Getting started with rental property investing
Getting started in rental property investing comes down to four questions: how much capital you need, which property to buy, how to finance it, and who runs it once it's yours. Most first-time investors lose six to twelve months answering them. They read forums, watch YouTube, sign up for $20K coaching programs, and never make an offer. These articles are for people who want to skip that loop. Capital requirements, the numbers that drive a deal, what to expect from a DSCR loan, how to read a pro forma, and what a first property costs to own once the tenant moves in.
Lineage's position is that you don't need to become a real estate expert. You need the right team. A first purchase involves an agent, a lender, an insurance carrier, an inspector, a title company, and a property manager. Coordinating six vendors is the part that stalls people, not the investing thesis. Lineage runs that coordination as one transaction, with a $749 buyer fee paid only at close and an average of about 22 days from contract. If the answer is that you're not ready, the reading below gets you there faster than another year of research.
How to buy a rental property: a beginner's guide
How to buy a rental property, step by step: how much money you need, the numbers to know, financing, picking a market, and the mistakes to avoid.
Read articleReal estate investing for beginners: the five paths, compared
Every beginner's guide lists ten ways to invest in real estate and walks away. Here are the five real paths, who each one actually fits, and how to pick yours.
Read articleTurnkey rental properties: what they are, and where they stop
What turnkey rental companies actually do, where the model stops short, and how to vet any operator before you wire a dollar. No pitch, just the category explained.
Read articleSingle family vs. multifamily: which should you buy first?
Buying a multifamily property or a single family rental for your first deal? We run the real numbers on three Lineage listings and show you how to choose.
Read articleTurnkey vs. BRRRR for high income W-2 investors
If you're a W-2 earner pulling in $250K or more, turnkey almost always beats BRRRR once you account for your time. BRRRR can post higher returns on paper, but it eats 200-400 hours per deal plus contractor headaches and rehab risk. Turnkey gives up 2-3 points of yield to give you your weekends back.
Read articleInsuring your rental property: what most investors get wrong
Investment property insurance is not homeowner's insurance. Here's what rental property investors actually need to cover, what they can skip, and what the gaps cost when something goes wrong.
Read articleRental property vs REITs: Which is the better investment?
Rental property vs REITs: a direct comparison of returns, tax advantages, leverage, and control. See which investment structure produces better after-tax returns — and when to hold both.
Read articleHow to evaluate a rental property in 15 minutes
Three numbers, two ratios, and a few red flags. The framework our team uses to evaluate every property before it hits the Lineage marketplace.
Read articleThe four ways rental properties generate returns
Stocks give you one path to growth. Rental real estate gives you four, working simultaneously. Here's how cash flow, appreciation, tax benefits, and principal paydown compound over time.
Read articleHow much money do you need to buy a rental property?
For the price of a luxury car, you can own a cash-flowing asset. Here is the real breakdown of what it costs to buy your first rental property.
Read articleThe Lineage approach to real estate investing
Schwab didn't invent stocks. They made investing accessible. Here's how Lineage is doing the same for rental property.
Read articleHow to buy your first rental property: A step-by-step guide
Learn how to buy your first rental property with this complete step-by-step guide. From defining your goals to managing your investment, we walk through every decision point.
Read articleCommon questions
How much money do I need to buy my first rental property?
Most investors need 20 to 25% down, plus closing costs and a cash reserve. On a $200,000 property that lands in the range of $50,000 to $80,000 all in. The reserve is the piece people skip. Lenders want to see a few months of payments in the bank, and your first vacancy or water heater will come out of it.
Should my first rental be a single family house or a small multifamily?
Single family is the more forgiving first purchase for most investors. It's cheaper to enter, easier to finance, easier to insure, and it sells to owner-occupants as well as investors when you exit. Multifamily spreads vacancy risk across units and often produces more cash flow per dollar, but it's a harder property to manage and a thinner resale market.
Do I have to deal with tenants myself?
No. A property manager handles leasing, rent collection, maintenance calls, and turnovers, at an average of 8% of collected rent. You review a monthly statement and make the decisions that cost money. You don't get a call at 2am. You get an email with a summary and a decision to make.
How do I tell whether a property is a good deal?
Start with rent versus total monthly cost, including principal, interest, taxes, insurance, management, and a maintenance reserve. If rent doesn't cover that, nothing else about the property fixes it. Then check the rent against comparable units nearby, since an optimistic rent assumption is the most common flaw in a pro forma.
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