When trying to find remote deals, you need to understand how to narrow down all the list of possibilities before closing in on a few deals. Therefore, to find a good rental property to make your offer on, use non-negotiable factors. These prevent you from going by feel or wasting your time analyzing properties that do not match your investment goals. And so, to stay focused when on a remote property hunt, keep your goals clear and list out properties based on those goals alone.
Once you’ve got a specific set of properties filtered out, it’s time to starting closing the deal. So, today, we’ll look at the 3 most important things you need to take care of before closing a remote rental investment.
3 Things to Take Care of Before Closing a Remote Rental Investment
Here are the 3 most important things you need to take care of before investing in a remote rental property.
1. Take a Virtual Tour of the Property through a Local Agent
Use the power of modern tech to take a virtual tour of the property you intend to invest in using one of the local agents in the neighborhood. This allows you to thoroughly check and identify potential issues with the property. In addition to a live video tour, you should get the agent to send plenty of photos and videos to comb through and judge the property.
2. Get in Touch with Your Property Manager for a Proper Rental Analysis
As part of the due diligence before closing a rental investment deal remotely, you need to get your property manager to conduct a thorough rental analysis. Here, your PM will be looking at income-generating items such as rental income and other income sources against expenses such as management fees, repairs, insurance, and vacancy losses.
This is one of the essentials things you need to take care of before closing a deal, as it helps identify how good of a deal an investment is. The most important pieces of feedback you need to get are:
- Is the rental the type of home people in the neighborhood are looking for?
- How long does a property in that neighborhood stay on the market before being rented out?
- What are the local rental rates for the rental property?
The property manager who conducts the rental analysis is your source of truth – use them to understand whether a deal is worth pursuing.
3. Rehabbing the House
From the photos and videos, the agent took while giving a virtual tour of the house, create a list of everything that needs to be repaired or touched on before you can rent it out. Through a thorough inspection, you will often find that a seemingly good deal is not as great as you thought it to be. The most common issues you want to be on the lookout for include:
- HVAC system problems
- Roof and flooring issues
- Poor plumbing or extensive electrical work
- Mold infestations
Conclusion
Once you’ve gone through all items on your checklist, it’s time to close on the deal. If the rental you are interested in ticks all the right boxes after the 3 steps we just looked at, you can be sure you’re looking at a great deal. Without a doubt, you’ll have a better footing as opposed to diving in without considering going through these crucial steps.
