A rental property bought in a market at a distance from where you live could be something you want to add to your investment portfolio. There are many advantages to doing so, especially if you know a certain market is ideal for owning a rental home in Miami. You might even be considering purchasing your new rental property sight unseen. After all, a lot of rental property investors do it without any problems. However, buying rental property sight-unseen also has some pitfalls that you’ll definitely want to avoid. To help you acquire a profitable rental property sight unseen, here are a few of the top tips from real estate experts.
Get a good real estate agent.
The key to successfully buying a property sight unseen is 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. 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 vital especially if you can’t be on-site to see certain things yourself. For example, you must ask your real estate agent to send you a floor plan or the dimensions and rough layout of the property if the floor plan is not available. You should also ask about the visible condition of the property and things like sounds and smells. These are things you won’t see in a photo.
Research the area.
Aside from the needed details about the property, you will also want to know about the potential new 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 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. A lot of things are different at daylight and at nighttime.
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 is helpful in pointing out details your real estate agent missed (or didn’t want to report). And because they are residents, they can give you a better feel of the characteristics of different parts of town and the property’s neighborhood.
Get an appraisal and a home inspection.
Finally, you must insist that a professional appraisal and home inspection be 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. 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 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 Dade manages. Our Miami 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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