Investors who buy based on rent

[Camerron Feagin]

My bigger pockets family is their a investment strategy where you sell to investors  who buy properties based on how much the property rents for? For example if I find a distressed house, renovate it up to code, rent it out, then sell the property to an investor for how much it rents for. Such as if it rents for $700 a month and then sell it for $70K. 

Is anyone familiar with this

[James Wise]

Originally posted by @Camerron Feagin:

My bigger pockets family is their a investment strategy where you sell to investors  who buy properties based on how much the property rents for? For example if I find a distressed house, renovate it up to code, rent it out, then sell the property to an investor for how much it rents for. Such as if it rents for $700 a month and then sell it for $70K. 

Is anyone familiar with this

 Price to rent ratio is one piece of the pie. You still need to account for comps. Comps are what banks are going to use to determine value at the appraisal.