Rental Properties Search
Hi All,
I finally decided to invest in rental properties. I think it fits my needs at the current moment to generate cash flow. My problem is finding properties that will actually fit my criteria, Positive cash flow, DCR > 1.2, decent cap rate. I try to look at properties from http://www.realtors.com and other local real estate agents.
Is there any problems with my approach?
Should I team up with a rehabber that will sell me properties to rent?
What are some other methods of finding rental properties?
I live in NYC and I am targetting properties in the tri-state area. Is it even possible to find good rental properties w/ positive cashflow by where I live?
Oh. Im targetting multi-family homes with at least 2 units.
Any feedback would be welcomed. Thanks!
[ Edited by idawazoo on Date 11/30/2004 ]
Most of the good deals are not on the MLS, look for for sale by owners, run down units, etc.
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thanks for the idea. I'll go drive around the area and look for leads.
Hello - I replied to your other post about the 3 unit property.
If you are looking for cash flow don't be afraid to venture outside of your local area. Depending on what your market is doing it might not be easy to find something. There are MANY real estate markets across the country where you can get into a property for a minimal amount of money and actually have cash flow. All you need to do is make sure that you secure a solid property manager to take care of your place - or better yet find a good friend or relative that you can partner with who lives in that area. You can be the moneyman and they can manage the property.
Hope this helps.
alex668,
Thanks for the idea. I guess I will have to take some time and research some other areas. I have been thinking about various upstate NY, VT, and PENN areas.
It looks like more and more the most important thing is to find a good property manager.
you placed a good topic idawazoo, Im doing the same thing you are but looking for 3-4 units. Ray Higdon brought up a good point looking for FSBO's, but Im having the problem in finding these For Sale By Owners. Ray - would you know of a way to locate these such people? Your help is much appreciated.
Look in the newspaper classifieds, drive around and look for signs. Make sure to look in the pennysaver type newspapers as well, the advertising is usually cheaper. Any for sale by owner sign should be called just to get practice at talking with them and possibly find a deal.
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I live in the tri-state area as well. I had to go to CT to find a property that worked. It's a 3-family and I just closed on it last month. So far, so good. This is my first property so I'm pretty excited to have taken the first step!
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ray_higdon,
It's hard for me to look for FSOB because most of the areas I am researching are at least a 2 hour drive away from me. I think Im going to get a paper from another city and look from there.
Definately use the paper, you might advertise in that same paper or give out flyers to make people look for you. I think it was Scrooge McDuck that said work smarter not harder
Thanks, i am looking for deals. but I have a major concern, since I will be investing in far away properties, I need to find a good property management team. I think once I find that, I will narrow down the areas where I want to purchase.
I would see if you can find a real estate investor meeting in that area and talk with as many people as possible to get reccomendations for a property mgmt company.
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