When investing in residential properties buyers have to consider several factors. Here are a few suggestions.
1. Types of Properties
a. Builder Spec Homes - Great Incentives, Large Commissions, Warranties - ease of managment
b. Resale - Buyers Market, Negotiable Sellers, Look for Days on Maket
c. Short Sales, Preforeclosures, Foreclosures - MLS Listings or Wholesalers are great sources
d. Pre Leased Properties - Existing Tenant, Pre Paid Rents, and Below Market Prices
2. Comparable Prices - List Prices as important as Sale Prices - especially if flipping
3. Current Rental Rates in the Neighborhood and Zip Code - Rent Clicks, Craigslist
4. Available Financing and Terms - Option ARMs useful to manage your cash flows, Rent vs. Mortgage
5. Property Condition and Management - Monthly maintenance and reservces
Another Option is to pre-qualify tenants first, match them with an investor, determine what the tenant wants and can afford, and THEN go buy the house that meets both the investors needs and the tenants wants. You can then put the tenant into a lease purchase that they are now more likely to actually close escrow at the end of the lease purchase.
Mat Curtner, REALTOR
J. Roberts and Company