Site unseen purchase?

Question

Taking a show of hands on how many folks bought an investment property site unseen?  I do buy and hold multifamilies, did some flips, did somw BRRRs all the run of the mill real estate strategies. But I have never take such risk, although I recently saw a multifamily investment that my require it.  Just curious for those of you who have what your success story or horror story sounds like?

Rick Ortiz · Answer

@Susan Tan

Im almost at that point. I dont have many units to date, just 19 doors. But i really only treated this like a business 2 years ago. So point is i expect to scale quicker (once im done forking up $60k a year for daughters college tuition). That being said i have a full time W2 job and im at a point where property mgmt needs to happen soon since im running myself thin.

Susan Tan · Answer

I posted about this same topic in https://www.biggerpockets.com/.... Having a good property manager is key. I spend <5 mins each week on a quick call w/ my property manager. Regular buy & hold rentals from over 2,000 miles away is simple & passive. I don't do the tenant screening or repairs because that's what I pay the property manager each month to do in exchange for peace of mind.

Lynnette E. · Answer

Yes, some of the players do break into unoccupied property to view it.  I won't.

Some also do ask occupants to let them look inside for $100.  The 'rules' say to not bother the occupant.  I don't.

I follow the rules, whatever they may be.

At the same time, I did not put myself in an unsafe situation as it could be in some situations.  Asking a stranger to let you inside their house may work for the burly guy, but for me it could be very different.  BTW, one of my houses was occupied by 2 very bad registered sex offenders...glad I followed the rules in that case!

Rick Ortiz · Answer

@David A.

Ya, strange how its supposed to be unseen yet all these folks have inside scoop.

Rick Ortiz · Answer

@Myriem Mhirit

I mean i guess everyone has a different risk profile and as long as you can get some diligence done and make a somewhat informed decision it makes sense.

Myriem Mhirit · Answer

@Rick Ortiz I have bought investment properties without seeing them. I was able to pull the trigger by performing due diligence on the neighborhoods, third-party inspections, and having a property manager in the area that I can trust.

Rick Ortiz · Answer

@Lynnette E.

Omg. Tenants selling light fixtures. Kinda funny and sad at the same time. But looks like you did well. So thats good.

Lynnette E. · Answer

I have bought investments properties at auction without seeing the inside of them, only the outside that can be seen from the street.  You win some and you lose some.  Even if you drive by and see someone is living in it, wow, some people can live in horrid conditions.  Even looking through windows, when that can be done, says nothing about the floor that is uneven and totally termite infested.  Or the floor I stepped through when I walked into the garage.  Buying houses at auction about 1/2 did not have any form of heat or air conditioning.  One had the plumbing recycled.  One the neighbor was rapidly selling light fixtures, cabinets, etc.  on FACEBOOK.  Even after I bought it she told me she had already listed one light fixture and 'had to get it'.  Yeah!

But all that said, I get them at a good price and overall am happy with what I have.