If you’re gearing up to add a new rental property to your investment portfolio, you may be thinking about buying in a market at a distance from where you live. There are a lot of solid reasons to do it, particularly if you identify that a certain market is ideal for owning a rental home in Greenwood. You may even be tempted to purchase your new rental property sight unseen. After all, since some rental property investors do, it can work out all right. But be aware that buying a rental property sight-unseen does have a few potential pitfalls that you’ll specifically like to avoid. To help you find and buy your next profitable rental property sight unseen, here are some of the top pointers offered by real estate experts.
Get a good real estate agent.
The most important thing you can actually do to successfully buy a property sight unseen is hiring the right real estate agent. There simply is no substitute for having someone who understands the local market, has expertise in the type of property you want to buy, and is apt to send you detailed information about each listing. To ensure you hire the right person, ask for references, verify their experience, and do interviews. You’ll be working closely with this person, so getting a good fit is exceedingly important!
Ask the right questions.
Whether you plan to tour a listed property or not, you need to ask a lot of questions and gather as much information as you can. This is particularly true if you can’t be on-site to see certain things for yourself. By way of example, you should have your real estate agent send you a floor plan or, if one isn’t available, the dimensions and rough layout of the property. Moreover, ensure to ask about the apparent condition of the property and things like sounds and smells. These are things that a mere photo will not convey.
Research the area.
Not only do you require details about the property, but you’ll moreover want to ascertain as much as you can about the potential new neighborhood. One good place to start is by opting to use Google Earth and Google Maps to view the property’s street. You might additionally ask your real estate agent to 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.
Oftentimes, one of the effective ways to learn a lot about a potential property is to look at it several times, at different times of the day. A property may seem to be on a serene neighborhood lot in the morning, only to find out that there are unruly neighbors, late-night train sounds, or other nuisances occurring after dark that your daytime tour would have missed. Things can appear very different in the daylight than they do once the sun goes down.
Enlist friends and family to help.
If you happen to know anyone residing near the rental property you want to buy, think of asking them to tour the property and drive to the neighborhood where your place is located. A second set of eyes never hurts, and they may observe elements that your real estate agent missed (or didn’t want to report). As a resident, they can further give you a better idea of the characteristics of different parts of town and the property’s neighborhood.
Get an appraisal and a home inspection.
One last note, you naturally should have a professional appraisal and home inspection done. Although several lenders require both as part of the financing process, you should still plan a professional inspection even if it isn’t required. The inspection and appraisal can warn you of any number of concerns, from serious structural problems with the property itself to aspects that may essentially impact your property’s value. These are things you need to perceive prior to 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 Indianapolis Edge manages. Our Greenwood 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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