Seeking Advice For An Out-of-Area Deal
Hello,
I have been looking to buy a light fixer in an eastern state. I normally wouldn't be eager to buy out of my area, but this is a deal which was referred to me, and the seller really is motivated and wants out.
It is located in a town of about 10,000 people, and I have a few questions:
1. I tried getting comps from the link which is on this site (electonic comps or whatever it's called) and none came up for that area. The same thing happened when I tried Data Quick. How can I get some comps? I'm afraid if I ask a local Realtor, they might just drive out there and try to list it.
2. My exit strategy. I know that if this were in a medium to large size city, I could find investors to wholesale it to, but how would I find investors in a town the size of 10,000 people to be able to flip it to?
3. I know that homes there don't sell the same way they do where I am. Should this be a deterrent? A bit of additional info, the house has existing tenants who have been there for 5 years, providing a positive cash flow.
Please advise me, thanks.
I strongly encourage you to get an appraisal. You should be able to do a PA with the seller contingent on a favorable appraisal (and a separete contingency for an inspection)
After you have the PA signed (notarized is a really good idea); then you can call whatever realtor, appraiser and or local bank that you want..
You will want to insist on seeing a copy of the lease prior to signing anything as selling homes in small markets can be a very lengthy process and having it sit vacant will obviously impact your profit!
I have serious doubts about buyingout of town unless you are a veteran at rental ownership. New property owner, out of state is a recipe for disaster. The property manager you hire will most certainly have a number of expenses. Unless you are keenly aware of expenses you will not know if you are being taken to the cleaners.