If you had asked us 20 years ago whether it was possible to buy a property that you’ve never seen before, we would have strongly advised you against it. After all, how can you spend that much money on something without ever having been to the state that it’s in?
Things have changed. Technology has changed. The real estate markets across this country have changed.
Now, it’s completely possible to buy a Dayton rental property without seeing it first. As long as you’re smart about the local professionals you partner with and you do your due diligence by having all the necessary inspections done, you can easily invest in our thriving market from some other city or state.
At ManCo Property Services, we work with out-of-state investors all the time. Occasionally, we help investors from other parts of the country (and even outside of the country) who are interested in buying real estate in Dayton. They often live in more expensive areas, where investing requires a lot more capital.
If you’re thinking about investing without seeing the property first, we have some important recommendations for you.
Bring in a New Level of Due Diligence
If you’re investing in a Dayton rental property sight unseen, we advise you to spend even more time than you normally would on inspections, reports, and research.
For starters, you’ll need a full-blown inspection by a licensed inspector who can tell you what the property’s trouble spots might be now and in the future. Evaluate the inspection report carefully, and talk to the inspector about what was found and where the greatest areas of concern may be.
Don’t stop at the general inspection. You’ll also want to do a termite inspection and a sewer inspection with a main drain plumbing scope. This is especially important if you’re investing in an older building or house. You’ll spend a few hundred dollars on this inspection, but it’s well worth it. You’ll save yourself thousands later on, as well as a lot of drama and heartache that can unfold when a sewer line bursts.
Spend some time researching the property itself as well. You can find plenty of information about it online by reviewing tax records and histories of purchases and ownership transfers. You also want to explore the area and the neighborhood. Who will the potential tenants be in the area?
Find out what you can about the property’s history, including any previous damage or repairs, and check the local crime rates. Additionally, research the neighborhood to ensure it’s the right fit for your target tenants. Don’t forget to also consider the resources in the area, as you will certainly need vendors and contractors who can help you prepare the property for the rental market. You’ll also need cleaners, landscapers, painters, and other experts.
Lean on Technology to Invest Without Seeing a Property
Technology has come a long way when we’re talking about the leasing, management, and maintenance of your rental property. Using it will be an absolute necessity when you’re investing in property that you have not seen. The only way you really will see it is by taking video tours and looking at detailed photos and reading inspection reports.
Most websites and apps will provide you with virtual tours and 3D floor plans. Take advantage of these tools to get a sense of the property layout and condition. Additionally, consider using video conferencing when you have a real estate agent or a property manager walk through the property for you. You’ll also want to use video chats and online meetings for discussions with vendors and inspectors as well as other local service providers such as brokers and insurance agents.
Partner with Dayton Property Managers and Real Estate Experts
A local real estate agent will help you identify a property and negotiate a deal. They’ll help with the closing and they’ll share information with you about the property. As a remote real estate investor, you’ll need local experts who have invested heavily in technology. This will allow you to stay connected to your management company and your rental property.
Choose a Dayton property management partner with detailed and expert insight into the local rental market. With our experienced and proactive management team, you can expect more than assistance when it comes to finding and buying a new investment property. We’ll help you understand what your likely rental value will be and how much you’ll probably have to spend on maintenance. Once we manage that property, we promise:
- A quick leasing period. We rent out properties that are occupied quickly, avoiding long vacancies and financial loss.
- An immediate response to emergency maintenance issues and routine repairs.
- On-time rent collection.
- Lease enforcement and tenant accountability.
- Lower turnovers and higher tenant retention.
A local property management partner will understand the requirements of your portfolio and develop a good relationship with your tenants. You won’t have to worry about investing sight unseen – we’ll see it for you. You won’t have to worry about leasing out your property or managing it or maintaining it. We can do that for you, too.
Real estate investments are part of a long term wealth and financial strategy. It’s a great way to plan your retirement or build a portfolio that leads to wealth. When you buy real estate, you can diversify a larger portfolio, and offset the risk that comes with other investments such as stocks.
When you’re considering an investment property, whether in your neighborhood or in some far-flung market, you need to ask if the numbers work. If they do, and you know that a particular property will work in your portfolio, run it by your property management partner. We can objectively consider the major indicators, such as return on investment (ROI), rent-ratio, turnover stats, and the final cost that you’ll be taking with you to the closing table.
We think the Dayton rental market is an ideal place to invest. If you’d like to buy a piece of rental property here, or diversify your portfolio with several properties, but you’re not sure you can make it to Dayton, contact us at ManCo Property Services. We’ll be your local experts.