Investment/Rental Property
I have seen lots of advertisment for properties for sale out of state and being from CA the prices are very reasonable. I have seen many that are for sale with current tenants. It seems to be a guarantee monthly return, but it seems to good to be true. What are some of the things I need to look for and what are some of the question I need to ask? On an investment property what should I expect or what is a good positive cash flow? Also, are there any states or cities that I should focus on? Thanks to all in advance.
I have only looked at the ones posted here and the people I have spoken with only have good things to say...the lease has just been renewed, totally rehabbed and it has appraised for more than what they are selling it for. Should I get a copy of the appraisal with form 216 & 1007, home inspection and schedule E?
If you are looking to buy out of state, you definitely want to check out the area where you are thinking of investing. The area is probably more important than the individual property because there is not much you can do if an area is not good. You certainly want to run proformas on candidate properties, but you should check the rental market. There are some areas where there is tremendous appreciation, however, this has attracted many investors and there is a surplus of rental housing. You should also look at the Housing Price Index (HPI) for the area if appreciation is important. You can get HPI data on the internet if you do a GOOGLE search with key words HPI and OFHEO.