Episode 4: What to Consider When Buying Residential Investment Properties Online
This episode of The Real Investor Podcast discusses how investors can leverage technology to source and acquire rental property online; however, Dennis warns new and seasoned investors alike to be cautious of unrealistic numbers and assumptions when using online platforms to find and analyze property. Price and appreciation assumptions can be extremely misleading and present a risk when beginning your search online.
Investors should also be mindful when factoring in the operating and turn costs of a prospective property. If the assumptions are unrealistic, there is potential to get burned on a bad deal because the numbers were painted as much better than they really were. In this episode, Dennis gives a few questions to ask the seller to ensure that the costs are being evaluated realistically. He also digs into the advantages of tenanted or “turnkey” properties. The takeaway of the episode is to do your due diligence! Regardless of if the property is vacant or tenanted, doing your diligence can make or break a deal and is the key to any successful real estate transaction.