If you feel ready for additional rental property for your investment portfolio, you may be thinking about buying in a market far from where you live. There are many advantages to doing so, especially if you know a certain market is ideal for owning a rental home in Bixby. You may even be thinking of purchasing your new rental property sight unseen. After all, a lot of rental property investors do it without any problems. But buying a rental property sight-unseen also has a few potential pitfalls you would want to avoid. Here are a few tips from real estate experts that can help you acquire your next profitable rental property sight unseen.
Get a good real estate agent.
The most vital decision you can make to successfully buy a property sight unseen is hiring the right real estate agent. The best one is one 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 will be hiring the right person, ask for references, scrutinize their experience, and conduct interviews. It is important to find a good fit since you will be working closely with this person.
Ask the right questions.
Whether or not you plan to tour a listed property, you need to ask a lot of questions and collect as much information as you can. This is especially true if you won’t be able to see certain things for yourself on-site. For instance, you should ask your real estate agent to send you a floor plan, or the dimensions and rough layout of the property. Ask about the visible condition of the property and things like sounds and smells as well. These are the kinds of information you can’t glean from a photo.
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. Google Earth is a good place to start. You can also use Google Maps to view the property’s street. Your real estate agent can also include a walking tour of the area in a video tour of the house so that you can get a better sense of the surroundings.
Request video tours at different times of the day.
A good way to learn a lot about a potential property is to look at it several times at different times of the day. A property that appears to be on a serene neighborhood lot in the morning can have rowdy neighbors, late-night train sounds, or other nuisances occurring after dark that your daytime tour would have missed. Things can look very different in the daylight and after dark.
Enlist friends and family to help.
If you happen to have friends living near the rental property you want to buy, consider asking them to tour the property or drive around the neighborhood in your place. The second set of eyes never hurts, and they could also reveal details that your real estate agent missed (or didn’t want to report). Since they are residents, they can also give you a better sense of how the different parts of town and the property’s neighborhood actually feel.
Get an appraisal and a home inspection.
Finally, you have to insist on 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. The inspection and appraisal can raise issues such as serious structural problems with the property itself to significant elements that could affect your property’s value. These are important things you have to know before committing to the purchase.
Of course, one of the best ways to buy a property sight unseen is to purchase one that Real Property Management Tulsa manages. Our Bixby 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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