Buying remotely and tolerance for repairs

[Gary Dezoysa]

Hi, I have a question for investors who invest remotely and buy sight unseen with an inspector's report doing the heavy lifting in terms of property condition assessment. Do you focus on properties with little to no repairs? That is what I am thinking is most viable, but the tradeoff is less of an equity cushion when you buy since its turnkey or close to it. Thanks for any thoughts.

[Mike D'Arrigo]

In competitive markets like Indianapolis and Kansas City which I am most familiar wity, demand is high and inventory is low so there generally isn't the luxury of time to go see the property before putting it under contract. Most investors rely on the inspection report. I'm not sure what an untrained individual will see in their own personal inspection that a professional property inspector won't see. Often times, they are doing it to do their due diligence on the area but you can accomplish that by making a trip  to your market before hand and getting to know the neighborhoods that fit your criteria so that when something comes available, you can pull the trigger quickly. One alternative is to put the property under contract with a contingency for a personal inspection to coincide with the home inspection. This should only be done if you've already done all of your due diligence and the sole purpose of your personal visit is to validate that what you've been told about the property and the area is in fact  accurate. For instance, you may want to confirm that it's a B class property and neighborhood like the seller or turn key company has told you and not in fact, a C class or worse. Everyone's definition of class can vary and some just plainly stretch the truth.