Keith Flenniken currently runs his own successful real estate business, Flenniken Enterprises. His vast portfolio encompasses a number of commercial and residential properties. Keith Flenniken provides an easy seven step approach for those interested in purchasing a rental property.
It is important to start with this time saving step to make sure you can afford the property. You will need a pre-approved letter from the bank or other lender, who will help you figure out exactly how much you need.
Contact a Real Estate Agent
Shop around for an agent who will work to find you the perfect deal. Read reviews and get recommendations from others before picking just anyone; you’ll be spending a lot of time with one another!
Spend some time with your real estate agent looking at potential properties. The more you look, the more likely you will find one suited for you.
Crunch the Numbers
Look at all the facts and figures of a property, including management, repairs, and vacancy. Property analysis tools are available to help analyze profitability.
Make an Offer
If you are satisfied with the estimated profitability of a property, as calculated in step 5, negotiate with the seller. Although you may go back and forth, do not overpay; even if it means losing the property.
Hire a Property Inspector
It is important to make sure you are not walking into any hidden surprises. A property inspector will survey the entire property for damages. If it is in worse condition than you thought, renegotiate with the seller. If they refuse, don’t be afraid to walk away.
Close the Property
When you are ready to close on the deal, all you need to do is show up to the Title Company and they will do the rest. The title and deed are recorded to the county and then you will be the proud owner of a new property!