If you are ready to add a new rental property to your investment portfolio, you might want to acquire one in a market that is far from where you live. There are numerous reasons for doing so, especially if you know a certain market is ideal for owning a rental home in Sugar Land. You might even be contemplating purchasing your new rental property sight unseen. After all, this is a common practice among rental property investors. However, buying a rental property sight-unseen does have a few potential pitfalls that you’ll want to avoid. Here are some top tips by real estate experts to help you buy 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 getting 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. Since you will be working closely with this person, it is important to really 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 example, your real estate agent should be able to provide you with a floor plan or, if that is not available, the dimensions and rough layout of the property. In addition, make sure you ask about the visible condition of the property as well as things like sounds and smells. These are things no photo can convey.
Research the area.
Other than the details about the property itself, you also need to know as much as you can about the potential new neighborhood. Google Earth is a good place to start. You can also use Google Maps to view the property’s street. You can also ask your real estate agent for a walking tour of the area in a video tour of the house so you can get a grasp of the surroundings.
Request video tours at different times of the day.
Looking at a potential property at different times of the day will tell you a lot about it. This is a good way to check if a property that appears to be in a serene neighborhood in the morning is not 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 after dark.
Enlist friends and family to help.
If you have friends living near the rental property you want to buy, consider asking them to tour the property or go for a drive around the neighborhood in your place. It is always good to have a second set of eyes that could spot some things your real estate agent missed. 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 must have a professional appraisal and home inspection done. While many lenders require both as part of the financing process, you should still schedule a professional inspection even if it isn’t required. An inspection and appraisal can give you a heads-up on a number of issues, from serious structural problems with the property itself to elements that may significantly impact your property’s value. Things like these are important 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 West manages. Our Sugar Land 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.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
