Are you ready to add a new rental property to your investment portfolio? You might want to consider buying in a market at a distance where you live. There are a number of reasons to do so, especially if you know a certain market is ideal for owning a rental home in Southport. You might even be considering purchasing your new rental property sight unseen. After all, many rental property investors who do it don’t have any problems. However, buying rental property sight-unseen also has some pitfalls that you’ll definitely want to avoid. Here are what some real estate experts say about how to acquire your next profitable rental property sight unseen.
Get a good real estate agent.
The key to successfully buying a property sight unseen is hiring the right real estate agent. It is crucial that you find someone who knows the local market, has expertise in the type of property you want to buy and is willing to send you detailed information about each listing. To make sure you are getting the right person, ask for references, check their experience, and conduct interviews. You will be working closely with this person, so it is very important to find a good fit.
Ask the right questions.
It is important to ask a lot of questions and gather as much information as you can whether you plan to tour a listed property or not. This is especially true if you won’t be able to see certain things for yourself on-site. For instance, your real estate agent could provide you with a floor plan or even just the dimensions and rough layout of the property. You should also ask about the visible condition of the property and things like sounds and smells. These are things no photo can convey.
Research the area.
Aside from learning the details about the property itself, it is also good to know as much as you can about the potential neighborhood. You can start by viewing the property’s street on Google Earth and Google Maps. Request a walking tour of the area from your real estate agent as part of the video tour of the house so you can get a better idea of the surroundings.
Request video tours at different times of the day.
One of the great ways to learn about a potential property is to look at it at different times of the day. A property that looks like it is in a serene neighborhood in the morning can be surrounded by rowdy neighbors, late-night train sounds, or other nuisances that your daytime tour would have missed. Things can look very different in the daylight and at night.
Enlist friends and family to help.
If you know anyone living near the rental property you want to buy, consider asking them to tour the property and drive around the neighborhood in your place. The second set of eyes never hurts, and they can even point out details that your real estate agent may have missed (or didn’t want to report). As a resident, they can also give a better sense of how the different parts of town and the property’s neighborhood feel.
Get an appraisal and a home inspection.
Finally, you should require a professional appraisal and home inspection. While many lenders require both as part of the financing process, you should still schedule a professional inspection even if it isn’t required. Inspections and appraisals alert you to any number of issues, from serious structural problems with the property itself to other elements that may have a significant impact on your property’s value. These are important to know before you commit to the purchase.
Of course, one of the best ways to buy a property sight unseen is to purchase one that Real Property Management Champion manages. Our Southport property management experts know every detail of the property and can often help you find off-market deals before they’re even listed. To learn more, contact us online.
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