When you invest in a rental property, you do plenty of due diligence to make sure it fits your investment goals, makes a good rental, and is capable of earning what you need it to earn in the short term and the long term.
Usually, you’ll see the property. You’ll walk through it, evaluate its strengths and areas of weakness, and consider a plan for renovations, cleaning, and curb appeal. You’ll make your offer from the comfortable place of knowing exactly what you’re getting when you buy that property.
It doesn’t work that way for every investor.
With remote and out-of-state investing easier than ever, it’s quite possible you’ll invest in a rental property without seeing it first.
Is this a good idea, and what should you know before you enter into such a deal?
We’re answering those questions and providing some expert advice.
Is It a Good Idea to Invest Without Seeing a Property?
Remote investing is easier and more profitable than ever, thanks to great technology and online platforms that allow you to view listings, negotiate deals, and transfer funds without being in the same room or even the same state as the seller.
Cleveland is a real estate market that’s attractive to a lot of investors from all over the world. They like the low home prices, the strong pool of tenants, and the growing potential for both cash flow and appreciation. When investors are looking for opportunities to diversify their portfolios and expand into new markets, they can’t fly out to see every property they’re considering.
Ideally, you’ll see the home yourself before you buy it. However, it’s not necessary. Investing sight unseen is absolutely a good idea.
As long as you have the right technology and the best local support in place.
You’ll need a strong understanding of your own investment goals, too. Know why you’re choosing a particular market. Understand how a specific property fits into your portfolio and your goals. Don’t buy something just because it’s priced well. If you’re going to invest in a property without seeing it, you have to know it’s the right property at the right time.
Work With Local Property Managers When Investing Sight Unseen
Your first step, when buying an investment property sight unseen, is to partner with a local expert.
A real estate agent will help you identify a property and negotiate a deal. They’ll help with closing and sharing information about your property. What you’re really looking for, however, is a company or a professional who can help you buy the property and then take care of managing it and leasing it and maintaining it once it’s yours.
Cleveland property managers can take you through the entire investment cycle, from identifying an opportunity to finding and placing a tenant and signing a lease agreement.
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.
Work with a team that can provide you with access to an online platform where you can check in on how your property is performing physically and financially. Work with a company that has invested in the best programs and platforms available in the real estate and property management industry. It will help you to see the home electronically from wherever you are. There can be video tours. Hundreds of photos. Inspection reports. You’ll quickly review and sign any legal and financial documents electronically.
Your real estate and property management partner can represent you in Cleveland, or wherever you’re buying your property sight unseen.
At Avalon Realty Group, our technology allows us to closely monitor the rental market in Cleveland and the surrounding communities. When we know what you’re looking for, where you want to invest, and what you want to spend, we’ll keep our eyes open for the right opportunities.
As you’re preparing to make an offer, we’ll determine what you should be paying and what you can expect to earn from that property when you’re renting it out.
With our experienced and proactive management team, you can expect more than assistance when it comes to finding and buying a new investment property. You can also expect:
- 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’ll do that for you, too.
Understanding the Local Rental Market
You don’t have to be in Cleveland physically, but if you’re planning to invest here, you need to understand the property values, the available properties, and the tenant pool. This is part of the due diligence you would conduct on an investment property even in your own neighborhood.
Whatever market you choose to pursue, you know the importance of researching the area and its economy. You’ll want to know if it’s a growing region for commercial activity and whether the population is expanding or shrinking.
We’re evaluating rental values every day. We’re looking at the properties coming onto the market, we’re considering the updates and improvements that owners are making, and we’re measuring the competition.
Your best property management partner will share all of that knowledge with you before you buy.
If you’re ready to invest in a piece of real estate but you have no plans to come and see it yourself, get in touch. We’d welcome you to contact us at Avalon Group Realty. We can help you invest sight unseen. We can also help you lease, manage, and maintain your investment property in the Cleveland metro area, including Kamm’s Corner, West Park, Fairview Park, Lakewood, Parma, Parma Heights, Bedford, and Bedford Heights.