We have been working with a wonderful realtor in Dallas. We found her thru a Google search. She has put us on an automatic list that sends us newly listed properties each day that fit our criteria. We had further inquired about several properties so far, but none has worked out. This week we are very excited by a Quadplex that has just gone on the market for $174,000. Each unit has 2 beds and 2 baths. We are waiting to hear back from the seller with more details before we can decide if we want to bid and how much we are going to bid.
Let me go back a step and explain how we became connected with different realtors. We are currently working with two, one in Dallas and another in Tulsa.We basically did some Google searches and then sent them a pre-written email asking for their assistance. We stated that we were out of state investors and what our criteria are. The only question we really asked was if they had experience working with other investors. We initially contacted about 3 or 4 realtors in each area and just went with the ones that we got the best feeling from. There are tons of realtors out there, so if we get to a point where one is not working very well for us, we can always switch to another.
These are the criteria we use for our search. The purchase price is based on the amount of money that we have to put down on any one property.
1- purchase price up to $200,000
2- minimum of a two family house/duplex
3- minimum of 2 bedrooms per unit
4- currently used as a rental property
5- the property does not need a lot of work
I am keeping my fingers crossed for the Quadplex.
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2 comments:
Have you analysed the local rental market, rental rates, and your expected net income from the property? Could you share some of those numbers? What are you aiming for?
That's one of the reasons I rent to students, I can get a return of about 50% on my money depending on the downpayment. See here.
One thing you should also consider is the potential drop in the value of your property. I know that many areas are currently entering into a slump (e.g. Pheonix ), so you should be careful. If you plan to hold the property for 10+ years, I would bet that you will be fine. However, if you would like to sell in a year or a few years, the drop in real estate values could leave you with negative equity upon the sale of the property.
Just some food for thought.
Thanks for all of the questions. I have spent the last few days going over some of the numbers. I plan on putting it all in a blog very soon.
Stay tuned.....
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