Remote Due Diligence

[Josh Gesler]

I am looking for suggestions on what things I should be asking for when looking at out-of-state investments. Nothing beats an on site walk around, but that isn't possible. I'll lay out my "plan" for checking out properties and feel free to point out holes.

I'm working with a wholesaler who is finding the properties so they are providing tax information, pictures, and rehab estimates.

If the property needs rehab I would ask for two actual quotes from contractors. To begin, I'm going to stick with properties that are rent-ready.

If the property is already rented, then we are ahead of the game when determining rent rates. If it's not rented, then I would contact a local property management company and try to get them to do an estimate. Does this sound logical? I would also get vacancy rates for the local area broken down by property type. (eg. 2/1, 3/2, etc)

I'm not sure that getting an actually appraisal would do much good since I'm basing the buying price on the cashflow not comps.

Ok, go ahead and rip it apart. :-)

Josh