There’s no right or wrong way to find investment properties, but knowing how to locate properties for investment can significantly speed up the process of building your business.
In this article, we’ll share the five best ways to find investment properties for sale nearby, as well as key factors to consider before deciding to purchase a property.
How to Find Rental or Sale Properties
The key to finding your next rental property is knowing where to look for available properties and exploring the various options available to real estate investors. Here are five methods you can use to discover rental properties for sale near you.
1.Working with a Broker
More than half of Israelis who handled the property search themselves experienced the most difficulty in finding the right property. For this reason, many choose to work with a reliable broker to help find properties that meet their criteria.
Hiring a broker can be very helpful when searching for investment properties, especially if it’s your first investment. They can identify off-market listings—properties that are for sale but have not been listed online by the seller—which can help you find great properties before other real estate investors.
There are also brokers with special negotiation certifications who can help lower the asking price or secure you a better deal on the property.
2.Searching on Real Estate Websites
House-hunting sites like Realtor.com®, Trulia, Zillow, and ForSaleByOwner.com can be a great way to find properties not listed in the MLS (Multiple Listing Service). Each site can give you an idea of what’s available, what you can get for the desired price, and current trends in the housing market.
These sites may also offer incentives for working with their real estate professional network—Realtor.com®’s Buyer Cash Rewards program allows homebuyers to earn up to 0.3% of the purchase price when buying a home with one of their brokers.
However, it’s important to note that some sites may not have up-to-date information on their listings. It’s essential to conduct thorough research on any property you’re considering, or share the listings with a broker to verify if the listing information is accurate.
3.Find Local Wholesalers
A real estate wholesaler is someone who works directly with potential sellers, negotiating an exclusive right to purchase the property. They then assign the contract to a buyer at a higher price to make a profit. Typically, wholesalers can be found online or referred to you by a real estate professional.
Since this method of finding investment properties doesn’t provide background information about the property, it is recommended to analyze the return on investment (ROI) before purchasing. You can use our rental property calculator to see if the asking price is fair and if acquiring the property can help you achieve your rental business goals.
4.Buy from a Court Auction
Foreclosed properties and those undergoing tax sales are usually required to go to auction, and this can be another great way to find off-market listings below market value. Depending on where you live, you may need to attend the auction in person or virtually, depending on how court auctions are conducted in your area.
It’s recommended to set aside money for renovations, major home repairs, and covering other expenses for these types of properties, as they typically require more work to prepare for renting.
5.Connect Directly with the Seller
If you come across a property in your area, you can contact the seller directly to get more information about the property, the asking price, and potential purchasing options. This can be especially helpful if you plan to buy a property without a real estate agent.
However, if you are still unfamiliar with real estate investments, you might want to consider reaching out to a real estate professional to ensure that the right questions are being asked about the property, you have all the necessary information, and the asking price is fair.
What to Look for in Investment Properties
Finding investment properties is just one step in the purchasing process — the next step is knowing what to look for in investment properties. When it comes to investment properties, here are some things to look for to ensure the property can generate monthly income:
- Neighborhood: Tenants prefer rental properties close to recreational areas, public transportation, and grocery stores. It also helps if the property is near schools or college institutions.
- Local Rental Demand: There should be local demand for rental properties to avoid long vacancies and to generate income from the rental property.
- Amenities: The more a unit can offer to the tenant, the easier it will be to generate tenant interest and charge a rent price that can ensure a profit every month.
- Property Taxes: Each city varies in property tax rates, with some being higher than others.
Why should I add real estate to my investment portfolio?
Real estate is a distinct type of asset that many experts agree should be part of a well-diversified portfolio. This is because real estate typically does not correlate closely with stocks, bonds, or commodities. Real estate investments can also generate income through rental payments or mortgage payments, in addition to the potential for capital gains.
In conclusion
Whether real estate investors use their properties to generate rental income or to hold onto them until the perfect selling opportunity arises, you can build a strong investment plan by paying a relatively small portion of the property’s total value upfront. And like any investment, real estate has profit and potential, whether the overall market is rising or falling.
