Investing in rental property is one of the most important decisions you will make in 2021. With the historically low mortgage interest rates, rising prices, and growing demand for rentals, there has never been a better time to buy income property for sale.
However, to succeed as a real estate investor, you need to know how to find rental income property for sale that will cash flow and generate a good return on investment.
How to Find Rental Income Property for Sale: 7 Ways
Here are some of the ways to look for traditional or Airbnb rental property for sale:
Mashvisor’s Rental Property Finder
This is one of the best property search tools in the market. Using the latest machine-learning algorithms and predictive analytics, Mashvisor’s Rental Property Finder allows you to quickly identify the perfect positive cash flow property at the click of a button. It comes with the following filters to help you narrow down your search:
- Rental strategy
- Type of property
- Number of bathrooms
- Number of bedrooms
Once you have selected your criteria for rental property, the tool will show you the best performing properties based on metrics like traditional and Airbnb cash on cash return. You will also get access to the property analysis pages where you can view further details about each rental income property for sale like cash flow and occupancy rate.
Related: How to Find Rental Property for Sale Using AI
The Mashvisor Property Marketplace
The Mashvisor Property Marketplace is an excellent source of non-MLS properties including short sales, auctioned homes, bank-owned homes, and foreclosed homes. Because these properties tend to be cheaper, it may be easier for you to achieve positive cash flow quickly after purchasing one.
To avoid being overwhelmed by the options, you can narrow down your search using the following filters:
- Miles from the city
- Property type (condo, single-family home, townhouse, multi-family home)
- Rental strategy (Airbnb or traditional)
- Listing type
- Number of bathrooms/bedrooms
- Cash on cash return
- Cap rate
Once you’ve found a list of properties that match your criteria, you can use Mashvisor’s Investment Property Calculator to conduct rental property analysis. This works as a cash flow or Airbnb calculator that will estimate the property price, recurring monthly expenses, rental income, rental property cash flow, cash on cash return, cap rate, and occupancy rate. These numbers will show you whether or not you will attain the return on investment you desire from the rental income property for sale.
Related: How to Find a Property for Airbnb Real Estate Investing
Real estate auctions are another great place for finding the best cash flow investments for sale. You can choose from any of the following options:
- Online auctions – Auction.com, Hubzu, Williams and Williams, Concierge Auctions, RealtyBid.com, and Foreclosure.com are among the most popular real estate auction sites. However, buying a rental income property for sale from an auction site means incurring costs such as buyer’s premium, transfer fees, technology fee, and auction service fee.
- Sheriff sale auctions – These auctions are usually carried out in your county’s city hall, courthouse, hall of records, or even the Sheriff’s office.
- Private auctions – Private auction companies are generally contracted by lenders to sell a large amount of real estate at one time. Such auctions are usually advertised widely and conducted at a local conference center or hotel.
A Licensed Realtor
To access cash flowing rental income property for sale posted on the multiple listing service (MLS), you will need to work with a licensed real estate agent. Agents can also be a valuable source of pocket listings, which basically refers to properties that haven’t been posted on the MLS yet. If you have a good relationship with a realtor, you can take advantage of such offers and avoid the competition that comes with publicly advertised properties. Besides helping you find rental income property for sale, an experienced agent could also come in handy during the negotiation and closing process.
Find a great real estate agent in any city in the US now.
A Local Wholesaler
Local wholesalers are another great source of off market properties. A wholesaler is basically an investor that negotiates with potential sellers and signs a contract to buy their home. The wholesaler then assigns the contract to an end-buyer at a higher price, thus making a profit from the deal.
You can find wholesalers by conducting an online search with the phrase ‘off market investment properties’. Also, be on the lookout for bandit signs in the neighborhood that say ‘we buy houses for cash’.
However, don’t just rush into working with any wholesaler that has a contract. Do your due diligence and conduct cash flow analysis to avoid wasting your time and money.
Direct Mail Marketing
Direct mail is a traditional, but very effective strategy for finding investment properties. As the name suggests, it involves sending a series of letters, postcards, or brochures to well-targeted potential sellers. Some of the rentals you could target include vacant properties, properties in foreclosure, and properties in probate. To enhance the chances of a response, direct mail campaigns are usually run over several months or weeks. Though this strategy is time-consuming, it can lead to a lucrative investment opportunity if you reach the right seller at the right time.
Popular Real Estate Websites
Besides the MLS, real estate sites like Zillow and Craigslist are other sources of rental income property for sale. Just be sure to turn to investment analysis tools like Mashvisor to ensure any property you find on such sites will cash flow. You can also use Mashvisor’s tools to conduct neighborhood analysis or rental market analysis. This will help you identify the best location for rental income property for sale based on real estate analytics and data comps.
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When it comes to finding rental income property for sale, the options are endless. You can even find your ideal investment property by networking with friends and relatives! However, to enhance your chances of success, use a combination of several strategies. Focus on the methods that suit you best based on the money or time you have available.
Related: How to Find the Best Rental Properties in Any Market