We are already a few days into the new year. Are you ready to purchase a rental property? Time goes by faster then we realize and plans to buy a property in 2018 can quickly end up mid-way through the year if the necessary prep has not been done.
Let’s create a quick list of items needed so we are…
Prepared to Buy a Rental Property in the New Year
If you are using financing, then you should already have gone through the pre-approval process. Notice I said pre-approval. Not pre-qualified.
These are two different things. Pre-approval is what a lender will finance, pre-qualified is what they think they will finance. Knowing what you can borrow sets the price range for your search.
If you are buying cash then be sure that those funds are liquid enough to make a purchase, especially if you want to make a quick closing offer.
2.) Know Thy Market
If you are serious about purchasing a rental property then you should already have your finger on the pulse of that local market.
Whether it’s going driving for dollars locally or doing a visit to an out of town city. Having an idea of what neighborhoods are like, what are the good school districts and the proximity of jobs are all important things that impact the performance of your rental.
3.) Research Up Front
Any properties that catch your eye, be sure to run them through the property calculator to get a rough idea if it will cash flow. Why run around looking at several properties that won’t cash flow?
Granted, sales prices are negotiable and the amount of money needed to get a property rent ready will vary based on what you see when viewing it. It still makes sense to run the numbers using some rough estimates to atleast see that its in the right ball park.
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I literally walk you step-by-step through finding, buying and renting out a rental property. The book is your personal mentor!