Got out first out of state deal! Next steps?

Question

Hi BP community! It's a huge day for our family, an offer on our first investment house has been accepted by the seller! We had such a hard time competing with cash buyers in Kansas City, MO. Now I'd really appreciate your advice on the next steps.

Do we book inspection now? How do we provide access for the inspector, or does seller lets them in?

We'd need some works on the house done to get it rent-ready - any advice how to approach this?

Would appreciate any input from experienced long distance investors out there!

Matthew Masoud · Answer

As an out-of-state investor, your agent is either going to be your biggest asset or liability.

Your agent should have very specific answers to these questions based on what's in the purchase and sale agreement.

Start building your team now. You need a good agent, contractor, and property manager.

Congrats on getting your first deal under contract, that's a big step.

Dan Krupa · Answer

Svetlana I assume this was a FSBO? Do you have an agent? What does your team on the ground in KC look like? Feel free to DM me, I help a lot of OOS investors and I am happy to offer some free advice.

Michael Smythe · Answer

Since you're asking these types of questions and an agent isn't giving you the answers, it appears you may have dealt directly with the seller.

If so, you need to start reading online ASAP so you aren't taken advantage of!

You should ALREADY KNOW if you have an inspection contingency or not and how to access the home.

Suggest you meet your inspector there and video record the inspection for your records. You can use it to start planning any needed repairs and updates.

Make sure you understand how the closing will work, title insurance, etc. Do you need an attorney at the closing representing/protecting your interests?

Andrew Syrios · Answer

You will need to coordinate with the seller to schedule the inspection and yes, you absolutely want to do an inspection. If you know a contractor, it wouldn't be a bad idea to ask him to view it too while under contract to at least get an idea of what repairs will cost if not an outright bid. And I would recommend going there yourself to evaluate the property. Don't just rely on pictures and what the agent/turnkey company said.

BTW, I'm in KC. What part of town is it in? I might be able to give a little advice on it.

Amir Khan · Answer

Congratulations! Since you've not yet closed (I am assuming because you say your offer has been accepted), be prepared because there is always a chance you might NOT close due to various reasons.

Do we book inspection now? How do we provide access for the inspector, or does seller lets them in? - Yes you have to have your inspection done within the contingency period, so get with the seller and schedule the inspection asap.

We'd need some works on the house done to get it rent-ready - any advice how to approach this? Suggest you first focus on closing the deal smoothly. If issues arise from your inspection, you may need to have that addressed by the seller and/or renegotiate the price if necessary. After close and based on your inspection report, you can decide which areas are necessary to make house rent-ready.

Got out first out of state deal! Next steps?

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