For properties in our target areas, and If the numbers work, we will drive by and it gets a thumbs up or down. Most properties we are interested in require a PSA to get inside. The market is hot here, and offers are in on a good property the first day or two of MLS listing (we dont have any connections for non-MLS properties). Our first time inside is often at inspection, which means we are pretty committed at that point. While the inspector does his thing, we go through looking with our tenant glasses on and make notes of any easy fixes/updates to make the place more rent-able and appealing. Bad layouts we make note of such as bad bathroom location, very outdated finishes, tiny kitchen etc. So far we've gotten lucky and haven't had to back out of a deal because the layout was horrible. We had a PSA on a short sale with a jack and jill bath, it was the only bath so one had to traverse a bedroom to get to it. The place was vandalized so our decision was made for us. Our first duplex was "rejected" by the winner because the place was not appealing to him for some reason and we got the contract on round two. We did not see a thing wrong with the place when we did the walk through. The tenants are still there, happy that we are good landlords that take care of the place.
We are DIYers and prefer a property that needs work. Work that we have the skill for and work that will increase the value of the place and preferably raise the rents:) updated bathrooms, better storage, insulation (yes one property needed insulating, go figure). We will not be selling these properties any time soon so if there is a tenant we just make note of an update/fix to do when the tenant leaves. Foreclosures and short sales are preferred, but we only have one foreclosure. The other properties were standard transactions, albeit very fast ones as they were priced under market. We were there at the right time with fast turnaround financing that made our offer appealing.
