Newbie Investor - FSBO Questions to Ask

[Michael Noll]

Hello BP community! I’m new to the real estate investing world but since January I’ve been trying to learn as much as possible (BP podcasts, forums, etc.)

I'm wanting to start with a few SFH rentals in my "backyard" which is the rural area of south TX but with great schools. There's a decent 3/2 BRRR property that I'll tour this weekend. What questions would you ask the owner in order to help evaluate the repairs needed?

Any other general tips to help educate me in the buy-and-hold world would be very much appreciated! Thanks!

[Abel Curiel]

Hello @Michael Noll!

I would ask the owner for the age of the roof, age of utilities (water heater, boiler/oil tank), and ask if/when the most recent upgrades were made to the property.

Of course, take the responses with a grain of salt. Once you've negotiated an acceptable offer to the seller, schedule a home inspection. There are services online that help you estimate repair costs using a PDF of your home inspection report. Repairpricer.com is a site we've used, low cost and super helpful. 

Other questions to ask the FSBO include:

- Why are you selling?

- Where are you moving once you sell?

- How long are you looking to close on the sale? ... If we were to close within 30-45 days, would that be an issue for you?

- What is your backup plan if you're unable to sell?

These questions can help you determine the seller's motivation and possibly give you insight into how flexible they are with current asking price.

Best of luck to you on the property tour and deal #1!

Abel