You’re ready to buy your first rental property but you don’t know how to find the right deal in the current market. An investor-friendly realtor can help find find your next rental property but that’s not all they can do. The first step and the most important part for rental property investors is to start working with a licensed broker who has personal experience buying and investing in a rental property and knows how to help you evaluate things like rental cash flow, land use, and zoning, and who understands what areas are most likely to increase in value over time. With the help of a professional realtor, buyers like you can search for and find the perfect home, land, or home with acreage.
How Should I Get Started if I Want to Buy in Southern Oregon?
The first step in finding the perfect rental is to contact a licensed realtor and begin discussing your options. A realtor can help buyers figure out what type of property would be the best fit for your needs and budget, as well as help you connect with rental property loans and financing options you might not have known were available to you.
You should also start doing some research on what areas are the best and learn the basics of evaluating an investment property. They’ll help you you search for listings that fit your criteria and pay attention to the important details that can help you make the right offer and understand the market. They can also provide you with referrals to other parties who can help you on your journey to a profitable investment.
Why use an Investor Friendly Realtor to Find Rental Properties?
Realtors that have experience with investment properties know how to find a rental property that fit buyer’s criteria and budget. They will also be able to give you advice on important factors like what type of real estate will be the most profitable in the current market. They can email you all new online listings weekly or even daily when a home that fits your criteria is for sale. In addition, you can depend on them to negotiate with the seller to help you get the best possible terms and deal. The most important criteria is to find a realtor who has invested in and owned their own rentals and has a deep understanding of the local market.
What to Look for In a Rental Property Investment
There are a number of things to consider when buying a rental property. The most important thing is to find a property in today’s market that will be profitable and to to make the right offer. To do this, a buyer needs to consider the potential rental income, the costs of repairs and renovations, and the location of the property. The right location can be the difference between finding a profitable long-term tenant vs having to constantly turn over tenants and deal with vacancies. Some school districts are much more desirable than others.
One of the benefits of a dedicated realtor is how they can help you understand how to factor things in like maintenance, property repairs, how to find a reputable property manager, and how to calculate things like cap rate and return on investment. Once your criteria is a met, the right professional agent can advise you on how to make an offer that makes the most sense and get you the best price.
What Is a Cap Rate and Why Does It Matter?
When it comes to residential rental real estate, cap rates are one of the most important metrics to consider for your next transaction so you know how much to pay. Investing in real estate is a business and you’ll need to explore how different metrics to gain the confidence you need to make the right decision. Cap rates are calculated by dividing the home’s net operating income (NOI) by its property asset value. This can provide valuable insights into a property and current market conditions, but it’s not the only metric that investors should consider. They will also want to look at the return on investment (ROI), internal rate of return (IRR), and gross rent multiplier (GRM), among other factors.
There are some simple online calculators available for rental property investing and your realtor can point you to the right resources you need. However, the numbers tell a story and this is where an experienced agent can help you benefit the most. They will be knowledgeable about property deals in the local market and will be able to tell you then benefits and downsides of a deal and a process for achieving your goals .
Why You Need to Know about Zoning and Land Use
Another important factor buyers need to consider is the zoning. You will want to make sure that the home or land is zoned for residential use and that there are no plans to change the zoning in the future. You also need to know about local zoning for things like AirBnB and the possibility of adding a second rental house on the same parcel.
Homeowners associations can also create restrictions on renting a house that can make a great neighborhood undesirable for landlords. Finding a rental with the right zoning can also help increase buyers profitability. You might be able to convert a garage to a studio apartment or add a second unit which can dramatically increase your cash flow. Simple strategies like buying in communities with the right zoning can help you achieve your investment goals with confidence.
What to Look for in an Investor-Friendly Real Estate Broker?
When you are looking for an investor-friendly realtor, there are a few things that you should keep in mind. First, you should look for an agent who has personally invested in real estate themselves. This will ensure that they understand the drive behind investing and will understand your incentives. Second, you should look for an agent who is familiar with the area where you want to purchase. This will allow them to give you accurate advice on what type of listing will be the most profitable in the current market.
You also want someone who has worked with both buyers and sellers and understands how the right strategy and tools are an important part of the process. Finally, you should look for an agent who is part of an experienced and reputable brokerage and who has closed real estate investment transactions both professionally and personally.
The Stress-Free Way
The lowest-stress way to find and buy your next rental is to work with an experienced realtor who can help find the best deal and also help you avoid properties that won’t be a good investment. Once you give them your buyer criteria they will be able to help you navigate the complicated process of finding and financing your deal, as well as offer advice on what type of property will be the most profitable in the current market. With their help, you can find the right deal, make the best offer, get the right financing, and close in a timely manner. They can even help you find a reputable and reliable property manager and connect you with other resources to help you get started as a landlord.
Investing in rental properties can be a great way to make a profit. However, finding an investor-friendly real estate broker is essential to success for buyers. An investor-friendly real estate agent will be able to find properties that fit your criteria and budget, give you advice on what type of property will be the most profitable, and negotiate with landlords and management companies on your behalf. Keep these things in mind when you are looking for the right investor-friendly agent and you will be sure to find one that meets your needs.
About Ashley Lacer
Ashley Lacer is a broker that has helped clients buy and sell almost 100M in property in the past two years. As an experienced investor who has bought and sold rentals and developed a commercial building, Ashley knows what it takes to help you find your next rental property. Ashley focuses on a multitude of property types and loves connecting people with the perfect property for their needs.