How Can I Find a Single Family Rental Property?

There are many reasons an investor might consider adding a single-family rental property to their real estate portfolio. Do you know where to start looking for your ideal investment property? Here’s how to find a single-family rental property that’s right for you.

Is Investing in a Single-Family Rental Property Right for You?

Single-family rental properties are one of the most popular assets for an accredited investor as they have the ability to generate consistent and predictable income. Some other common reasons to add a single-family rental property to your real estate portfolio include:

• You Want to Expand Your Portfolio
• You Want to Generate Additional Income
• The Timing is Right

Investing in real estate is similar to other forms of investing in the sense that you want to balance out your risk by picking smart investments. For an investor that craves diversification, a single-family rental property is the most seamless way to expand your real estate portfolio.

Steps to Investing in a Single-Family Rental Property

Like every investment, it’s wise to have a well-laid out strategy before jumping in. Here’s the steps you’ll need to take to invest in a single-family rental property.

Choose Your Investment Strategy

Choosing your investment strategy is the first step in managing a successful single-family rental. During this stage, you should aim to set a budget, long-term goals, and decide whether you want to hire a property manager or deal with land lording tasks yourself. As a vital part to any investment, you should also plan an exit strategy for when you’re ready to offload the property.

Do your Research and Find Quality Leads

Once you’ve got your strategy figured out, it’s time to start doing research to find quality leads. You already know what type of property you want to invest in, including what it looks like and where it should be located. However, you may still be unsure of how to find qualified leads. You can gain an edge by browsing local neighborhoods or going online to find qualified leads. Online leads will generally be the most competitive, as more investors have access to this information.

Work with a Realtor

Real estate agents have a good grip on the market and can help you when it comes to finding new deals that aren’t readily available. Another benefit of working with a realtor is that you will have even more opportunities, as you have an open door to their contacts. This partnership can help build your portfolio and help you meet new connections to leverage in the future.

Acquire Funding

The final step in investing in a single-family rental property is to acquire funding. Things can move quickly in real estate, so it’s important to find funding early on in your process. The most common type of funding investors rely on are hard money loans. These loans are preferred by investors since they are usually not associated with federal regulations giving them more flexibility. It can be devastating to find out your dream property fell through because you didn’t have enough funding. Acquiring funding early on can help avoid this.

On-Market vs. Off-Market Rentals: Which One’s Better?

On Market Single-Family Rentals

On market single-family rental properties are those that are listed with an agent or broker. This segment of the market is generally competitive, with many other buyers continuously looking for investment properties. It can be helpful to use a broker when looking for on-market properties as you can use them to find you deals, negotiate the deals, and help carry the process through to closing. Don’t be afraid to build relationships on the open market, as this can help you find better deals and save time in tracking down properties. With on-market deals, follow up is key to finalizing the deal.

Off-Market Single-Family Rentals

An off-market rental is like taking your destiny into your own hands in the sense that you’re proactive in finding your own deals instead of waiting for a broker. The key here is to get directly in touch with property owners if you spot a potential property that fits your criteria. If the owner is not interested or motivated to sell yet, it’s still handy to keep their information as they could change their mind in the future.

RCN Capital

RCN Capital offers short-term and long-term financing options for real estate investors. Whether you are looking to fix & flip properties or hold properties for rental income, RCN has flexible options that are suited to your needs.Connect with us todayto discuss your next real estate investment.