I am still a fairly new BP member, almost 12 weeks in (!), and I am on the cusp of making an offer on my first "Out~of~State" property. I remember hearing about a checklist regarding "Just before the Purchase" somewhere. I believe it stated a checklist regarding the property, the loan, the agent, and checklist for the property manager to be put into place.
I would really appreciate all input from seasoned investors as well as new investors alike. :)
Pretty exciting, just want to make sure I have my "House in Order" before I pull the trigger!
Thank you in advance,"BiggerPocketeers", for your expert advice and wisdom!
Best of profits to all in 2018! $$$
Daniel F. Harb, ARRT,RT(R)
Pick up David Greens new book on out of state investing. Make sure you have a team put together of the people you need, all utilities in your name, etc
@Daniel F. Harb I’m not an expert, but be prepared to have multiple PMs available in case the first one you get isn’t up to par. That’s what happened to me. Good thing I had two others I could try. Switched over and haven’t had issues since
IMO the most important quality a PM can have is communication.
When they are marketing your place, they should confirm with you the market price for rents...
When they are screening tenants, they should provide you with the different options and give you final say...
When a tenant brings up a complaint, they should reach out to you to let you know the issue and the solution...
If you have a question or concern, they should be available to you on that day
I have a great PM in my OOS investment property and it creates a very low-stress situation for me where I almost forget that the property exists, it's great.
Also... make sure the PMs will manage your property... not all PMs manage all houses.
Make sure you're bulletproof in your lending.... and make sure you're lender/realtors have a good relationship. This will help when you submit offer(s) and need approvals letters.
Know your min/max going into this, expect to get countered, and be brave enough to walk it. Get attached to a number, not a house.... this is a business.
If you're going to do short contract/inspection period get inspectors lined up now, figure out the prices (should be easy on line), see if what their schedule looks like. DON'T make the appointment till your offer gets accepted though.
Probably should of said this higher up, but oh well... define your relationship with your realtor prior to going into the offer. Make sure it's crystal clear what type of relationship you want. Maybe you want more feedback or maybe your hands off... either way clear it up now so everyone is on the same page, don't assume.
Also... you might want to verify the insurance costs on this once you get it under contract... if your estimating bake in a higher cost to your bid.