Found a Property - Now What?

1 Reply

Hi all, and Happy Saturday!

So I've been looking around for awhile and finally have located an out-of-state property that looks to be a great deal for my very first rental property purchase! I ran the numbers on the BP calculator and have set up an appointment with a realtor for a friend to go view the house, since it is out-of-state for me.

I have a few questions:

1. What types of things should I have my friend specifically look for or take pictures of when touring the house that are more likely to present fatal flaws?

2. If the friend tours the house and no fatal flaws present themselves, then what's next? Should I be getting pre-approved for a loan already in case it works out? Researching a property manager or contractor? Talking to a lawyer or accountant about the future tenant paperwork?

I've done my due diligence following the forums, listening to the BP podcast, and reading many of the books recommended here, but still somehow feel like I'm not fully sure how to actually apply all the general lessons to concrete, actionable steps now that I'm looking the potential deal in the face. Any help is very much appreciated! 

@Account Closed The things you want to look for in a rental aren’t much different than buying a home. If there isn’t any significant damage or concerns I like to look at the length of life I have with certain items; water heater, appliances, things like that just to plan ahead. Definitely start getting preapproved and lining up property managers. Line up a couple lenders and interview a handful of property managers. If it’s a SFR and you already have an account just ask if they’ve handled rentals before. I’m sure they have. If you don’t have one you’ll need one but that shouldn’t be in your top concerns. You’ll learn as you go. Everyone gets nervous until you go through it. Let me know if you have any other questions! - Mike