How to buy investment property
Here’s a how-to. Let’s say you’re going to start with duplexes….
I’d pick a particular neighborhood that interests you — or cal it a submarket. I’d build a conclusive database of duplexes and four-plexes in that neighborhood. This will take some driving around. pick small enough a geography to start off with so that you’re not overwhelmed.
For each property I’d track asking rental rates and availability - that will get you a vacancy rate and an understanding of market rents. I’d use tax record data — often search able for free on the internet — to gather comparable sale data and build a list of owners. I’d even take pictures. I’d dump all the information in a contact management program.
I’d start canvassing the owners of the these properties asking them if they’d sell. Phone is best but you start with an introductory letter if you like. Properties not marketed by a broker often sell for less!
Track their responses. Some sellers will be extremely unreasonable! It will take persistent and patient follow up, but I’ve observed new investors have a lot of success with one variation of this method or another.
There’s no magic easy method to finding deals, and focusing only on property listed with brokers is going to give you a lot of heartburn (agents are paid to get sellers the most money possible and most are good at it!)
Tags: Investment Real Estate