11 Ways to Find Real Estate Investment Properties

Knowing how to find investment properties is crucial in real estate. A successful investment starts with finding income properties with high ROI.

When it comes to investing in real estate, one of the important steps every investor must take is to find the right investment property. However, it’s not always easy to search for properties for sale, especially for beginner investors. While multiple resources are available, not all are equally helpful in finding a cheap yet profitable income property.

Table of Contents

1. How to Find Real Estate Investment Properties: 11 Ways
2. How to Find Investment Properties With Mashvisor
3. 5 Characteristics of a Good Investment Property
4. Mashvisor vs Zillow: Which Is Better?

The good news is that there are several proven ways to find the right rental properties. If you’re new to real estate investing and wondering how to find good investment properties, this guide will help you. We will explore simple yet efficient ways to search for and locate investment properties for sale.

In this article, you will learn that:

• There are different ways to find income properties for sale.
• You can drive for dollars to find properties not yet marketed for sale.
• MLS listings are an excellent place to find properties for sale. However, MLS databases are only available to brokers and agents. To access the MLS, you’ll need to work with an agent.
• MLS databases are one of many reliable sources of listings. Real estate platforms such as Zillow and Mashvisor are good alternatives to the MLS.
• Mashvisor provides the necessary investment tools that Zillow lacks.
• To find profitable opportunities, you should be familiar with the characteristics of a good investment property.

How to Find Investment Properties for Sale: 11 Ways

While finding income properties for sale is an important step in real estate investing, it is not the first one you should make. Before identifying an investment property, you need to decide where to invest. Deciding on a location for your real estate investment is crucial, and you should perform thorough research to ensure that you’re investing in the right market.

If you’re not sure how to get started when choosing a location, there are several things that you need to consider. Several important factors can help ensure that your investment will be a success. For instance, you must find a location with a strong economy and a growing population. It means people will want to stay and live in that place.

In addition, check how big the demand for housing is and whether residents want to buy a home or rent one. It can help you decide on the best real estate strategy for your investment. If you prefer to invest in Airbnb rentals, it’s essential to know how well the tourism industry is doing. You should only invest in a location that visitors frequent.

After deciding where to invest, it’s time to look for a property. However, before we go through the different strategies on how to find an investment property for sale, you should understand that the best method may vary from person to person. If you’re a new investor, it’s best to explore different methods to see which suits you best. 

Here are the 11 most efficient methods on how to find rental properties to buy:

1. Spread the Word

One of the simplest ways to find investment properties is through word of mouth. After all, many homeowners will tell the people within their network when they plan to sell their properties.

Do you want to be one of the first to know about available investment properties not yet listed for sale?

Talk to everyone in your social circle, including friends, relatives, colleagues, and neighbors. Tell them that you are looking for real estate investment properties to buy. Make sure to be clear about what type of investment properties you are looking for (single-family or multi-family homes) and which area you are interested in. 

Maybe they know someone selling a home or have seen a house for sale in their neighborhood. Or once they come across a potential seller, they can recommend you since they know you are planning to buy. Sometimes, someone in your network might be interested in selling their property but is still planning to list it on the market. You never know until you ask.

How to Use the Word-of-Mouth Method for Finding Investment Properties

Below is a step-by-step guide on how to use the word-of-mouth strategy in finding cheap properties for sale that can make a good investment:

Step 1: Tell your family, relatives, friends, co-workers, neighbors, bankers, and even your hairstylist or barber that you are looking for a property for sale. Ask them for recommendations if they know people who are selling their properties.

Step 2: Follow up with your network occasionally to let them know you are serious about buying.

Step 3: This step is optional, but you could offer a small incentive to anyone who can recommend a good deal. You can give the incentive after you close the deal. 

Pros and Cons of the Word-of-Mouth Method for Finding Investment Properties

Using the word-of-mouth method can be effective if you have a large network. If you don’t know how to find homes for sale, asking the people you already know is a good start. However, such a strategy may not work for everyone. Below are the pros and cons of the word-of-mouth approach:

Pros

• Relatively easy: Talking to your circle about your plans is easy because it’s just like discussing everyday things with your friends.
• You’ll find properties not yet listed: If you’re lucky and someone within your network is selling a property, you’ll be among the first to know. Also, if you end up knowing the seller, you might be able to buy the property at a low price.

Cons

• Time-consuming: It can be time-consuming, especially if your network cannot immediately make good recommendations. 
• Not ideal for people with a small network: If your network is small, it might be difficult to get efficient results from your search. 

2. Look for Ads in Newspapers

Another classic way to find real estate investment properties is through newspapers. Look in the classified section of your local newspaper under “Homes for Sale” or “Properties for Sale.” You will find ads for all real estate properties, usually categorized into houses (single-family or multi-family), apartments, and condos. 

Most of the time, you can find properties posted for sale by owner (FSBO), but you can also find property listings by real estate agents. Checking ads in real estate publications is also a good idea, although they typically come out weekly or monthly.

How to Look for Investment Properties for Sale from Newspaper Ads

If you’re a new real estate investor and are not familiar with how to find investment properties for sale using a newspaper, you can follow this simple guide:

Step 1: Find a popular newspaper in the location where you prefer to invest. 

Step 2: Look through the “Homes for Sale” or “Properties for Sale” section to identify a house that would make a good investment. Find one that meets your criteria, whether you’re looking for a multi-family or single-unit home.

Step 3: Take note of the contact person (homeowner or the agent) and other details. Reach out to the contact person as soon as possible.

Pros and Cons of Using Newspapers to Find Investment Properties

Most homebuyers search online (through websites like Zillow) to find properties for sale. Only about 25% of buyers still use newspapers to search for investment properties. Here are the pros and cons of using the newspaper method:

Pros

• Less competition: As mentioned, less than 25% of homebuyers still search for real estate properties in newspapers. It means less competition for you.
• More possibility to buy directly from the homeowner: Most people who post properties for sale in newspapers are homeowners. You can negotiate directly with sellers and may end up paying a lower price than when dealing with an agent.

Cons

• Only a few sellers advertise in newspapers: Because most things are done digitally now, even properties for sale are advertised online. It means newspaper listings don’t include all the available properties for sale. Most listings, including multi-family and apartment buildings, are advertised online.
• It might take time: Homes for sale in newspaper ads only come weekly or monthly. Finding a good investment property that will suit your preferences might take some time if you rely only on the newspaper method.

3. Drive Around Your Target Area

You can also find real estate investment properties by searching for homes with a “For Sale” sign. For some real estate investors unsure how to get started with their income property search, driving around can be a good idea. It allows them to find potential homes, whether single-unit or multi-family homes, to buy within the area they want.

You can also try driving for dollars. It means searching for properties not currently for sale or at least not being marketed visually. However, such properties may have owners who might be willing to sell. In this case, you need to keep an eye out for properties that look vacant, run-down, or suggest in any other way that they have an absentee owner. 

How to Find Properties for Sale by Driving Around the Area

If you don’t know how to find real estate properties for sale by driving around, you can follow the guide below:

Step 1: Get in your car and drive around the neighborhood you’re interested in. Look for “For Sale” and “For Sale By Owner” signs. 

Step 2: If you have a preferred property type, drive around a neighborhood with that particular property type. For example, if you only want to buy a multi-family home, go to areas where multi-family homes are.

Step 3: Copy down the names, phone numbers, and other contact information on the signs.

Step 4: Contact the homeowners or real estate agents as soon as possible to make a deal. 

Pros and Cons of Driving Around to Find Investment Properties for Sale

While you can drive around the area to find a property for sale, such a method may not always be as effective and efficient for all real estate investors. It’s important to know how to use it efficiently so you won’t waste your time and money on fuel. Here are the advantages and disadvantages of using the above method:

Pros

• Possible to find properties in your preferred area: If you’re lucky, you may be able to find a home for sale in the specific area of your choice. You can also locate a particular property type, like an apartment building or a multi-family home.
• Possible to find a home that owners might be willing to sell: When driving for dollars, you may see or meet a homeowner willing to sell their property.

Cons

• No guarantee to find properties for sale: By just driving around a particular neighborhood, there’s no guarantee that you will be able to find even one property for sale.
• You need to spend money on fuel: If you plan to do this in several locations, you must set aside money for fuel. It may be very costly in the long run.

4. Use Real Estate Investment Websites

Thanks to technological advancements, finding income properties online is now easier than ever. Some real estate investors use the MLS databases to find available listings. However, not all investors can get access to MLS listings. You must often work with a real estate agent who can access the MLS to find properties from this database.

Fortunately, plenty of other real estate investor websites are available on the internet besides MLS databases. These websites allow you to find thousands of property listings for sale. Usually, you’ll need to pay a subscription fee to access the listings. So it’s important to choose the website carefully to ensure you get the best value for your money.

How to Find Properties for Sale Using a Real Estate Investment Website

If you don’t know how to use real estate websites to find investment properties, you can use the following step-by-step guide:

Step 1: Search for a real estate marketplace online, such as the ones listed below.

Step 2: Compare their fees and services. Choose a platform that will work best for your needs.

Step 3: You can start to find properties for sale online by searching using your preferred criteria (location, property type, whether single-family or multi-family, budget, etc.).

Pros and Cons of Using Real Estate Investment Websites to Find Properties for Sale

While real estate websites are typically efficient when it comes to finding inexpensive yet good income property, this method also comes with advantages and disadvantages, such as the following:

Pros

• Quick and easy to use: With an online search, it’s quick and easy to find a property without leaving the comfort of your home.
• Plenty of options: An online MLS database and real estate platforms can provide a wide selection of properties for sale, depending on your preferences. It’s easy to find different property types for sale, including single-family and multi-family homes, apartments, and condos.

Cons

• Not usually free: While some online MLS databases are free, you can only get the full feature if you pay for a subscription.
• Not all real estate websites are reliable: Not all online real estate marketplaces are reliable. Some listings are not updated, while others do not list the best properties available. It’s important to choose carefully.

7 Best Websites to Find Investment Properties

Before looking for income properties for sale online, you must know the best websites and platforms. They include:

1. PropertyRadar

PropertyRadar is known to be a good client-oriented website for off-market investment property searches. It analyzes listings in multiple locations by mixing up more than 250 criteria.

As a result, it creates custom lists for every investor, including their main requirements for an investment property. With PropertyRadar, you can create personalized lists of the properties you’re considering.

However, the platform still lacks tools often crucial in investment property searches. With such a vast library of available listings, it would also be good to develop an expense calculator or a digital map with the hottest investment areas.

Nevertheless, many users favor PropertyRadar due to its customer-oriented approach and diverse investment property lists.

2. Roofstock

Another option worth considering, Roofstock, allows you to choose among single-family homes for sale and make your first investment based on the verified data. The platform offers potential investors a thorough and reliable analysis of properties in the most profitable real estate markets.

However, Roofstock may not be for everyone, as it focuses primarily on single-family homes. Such a type of property is especially popular regardless of the real estate market. Prospective investors and homebuyers often prefer single-family homes for their comparatively lower purchase price, manageable size, and thus a moderate level of expenses. But they might still be more expensive than condos.

Roofstock is best suited for investors looking for single-family properties exclusively. Also, some users wish it offers more convenient tools to facilitate their search.

3. PropertyShark

Among the websites to find investment properties, PropertyShark stands out due to its accurate property records. The records contain all the information that might be useful in comparing several properties.

On PropertyShark, you can get the owner’s name, address, approximate expenses, and taxes. You can also know the history of the property’s price and how it fluctuated over time.

In addition, PropertyShark offers some innovative assessment tools, such as the current state of the market you’re interested in, local demographics, and even the height of the nearest buildings. You can also determine whether your targeted property is assigned for current auctions.

PropertyShark mainly bases its research on New York City, where the local real estate market constantly changes. With its unique and precise analytics tools, the website facilitates the search for commercial and residential properties in NYC.

However, some users say PropertyShark sometimes includes outdated information on the presented listings. For instance, an already sold property may still be listed as available for purchase. For this reason, it’s better to double-check the data displayed on the website before signing up for any deal.

4. Fundrise

Fundrise is a website that can help you not only with finding the most profitable investment properties but also with creating your portfolio. As soon as you’ve signed up, you get access to the investor’s dashboard. The dashboard includes key information, such as your returns, recent updates on your deals, and even a feature called auto-invest.

As an investor-oriented platform, Fundrise offers three investment packages with different sums of minimum investment. It means you can still find a suitable property and become an investor, even if your budget is limited.

Given its wide range of services, Fundrise targets different types of real estate investors who wish to expand their portfolios. Also, it comes with a convenient and smooth mobile app that constantly updates you on all your current deals no matter where you go.

Among the cons of Fundrise is its somewhat poor customer support. Many users find the lack of a phone number or a live chat option inconvenient. Nevertheless, you can always check the list of FAQs or contact Fundrise via email. However, in such a case, you’ll need to wait up to 24 hours for a reply.

5. CrowdStreet

CrowdStreet is another reputable website for finding an investment property that departs from the traditional strategy. It provides users a comprehensive overview of the displayed properties, including all important documents and attached expenses. The platform serves as a diverse marketplace of properties you can search by name, city, deal terms, eligibility, and more.

As soon as you invest, you get immediate access to your personalized dashboard. It gives you regularly updated info on your current deals, expenses, taxes, and sponsor details. In addition, CrowdStreet offers plenty of educational resources. They include informative articles and advice on investment strategies, tactics, and more.

Notice that CrowdStreet requires a relatively high minimum investment, usually around $25,000. The website may not be suitable for fledgling investors with a limited budget. But it can be a good option for those with solid capital and no desire to become landlords.

6. Zillow

Being the largest website for residential real estate in the US market, Zillow has a wide range of properties for sale. These include MLS listings, new construction, and foreclosures. Moreover, listings are available across the entire US housing market, with no exceptions. Foreclosed properties come at highly discounted prices, making them profitable opportunities.

However, a major drawback of the Zillow platform is that it focuses on homes for sale rather than income properties for sale. Nevertheless, savvy investors can use many filters to narrow their search and find properties that meet their expectations.

Afterward, you would need to use third-party real estate analysis tools to evaluate whether these properties are worth investing in. It makes the Zillow method a rather time-consuming way of finding income properties.

7. Redfin

Redfin is a real estate property search tool known for inventing map-based market analytics. The innovation marked the start of the most advanced and latter-day instruments for online property search.

The scope of tools provided by Redfin includes such innovative options as 3D walkthroughs of the presented listings. Due to this feature, you can conduct a realistic house tour of your desired property using only your laptop or mobile device.

A 3D walkthrough helps you get a rounded first-hand experience with investment properties before checking them out in person. It’s impossible to disagree that the option saves an investor plenty of time.

However, there are some drawbacks that you need to consider. Innovative as it is, 3D walkthroughs still may not give you all the details you require to decide on your investment.

Also, Redfin lacks some of the universal tools for investment property analysis. So, to calculate possible expenses or compare different real estate markets, you must do additional research.

Related: Where to Find the Most Profitable Rental Properties in the USA

5. Network With Other Real Estate Professionals

Another effective way on how to find investment property is through a solid real estate investment network. Networking with other people in the industry can help you greatly in your search for properties to invest in. 

Experienced investors can refer you to many great opportunities that suit your needs and match your goals. Sometimes, they may even offer to sell some of their investment properties. So, before you start investing in long term or short term rentals for sale, you should begin to build an extensive network of investors and other real estate professionals. The bigger the network, the better. 

How to Use Your Professional Network to Find Investment Properties

A network of real estate professionals can be very useful when finding houses for sale. If you don’t know how to get started, here are a few steps that can help:

Step 1: Consider joining real estate investing clubs and networking events so you can make connections and form relationships with a large number of people in the industry.

Step 2: You can join online real estate forums and groups like Facebook and LinkedIn. You can reach out to various real estate professionals, including brokers, agents, realtors, bankers, lenders, contractors, and other investors.

Step 3: Get in touch with your network from time to time. Let them know you are trying to find properties to buy and ask for referrals.

Step 4: Stay in touch with them even if you are no longer looking for properties. It allows you to build a good rapport with your network.

Pros and Cons of Using Your Real Estate Network to Find Investment Properties

A network of real estate professionals can be advantageous, especially for new investors. If you can build a good relationship with them, they can give you tips on becoming successful in your investment. However, networking with professionals is not always easy, and it may also come with a few pros and cons, including: 

Pros

• You can learn from their expertise: A good network of real estate professionals share ideas and tips. They can provide advice on how to find the best income properties and how to ensure you’re buying a good investment.
• They have connections: Most seasoned real estate professionals keep specific networks of their own. If you need their help to find properties for sale, they can recommend you to their connections. Also, some of them may even be able to access the local MLS database.

Cons

• It takes time to build a network: Building a good network of real estate experts doesn’t happen overnight. It takes a lot of time to find like-minded people who share the same professional values as you do. Also, it takes time to build a good rapport with the people in your circle.
• Tough competition: Since most of you are rental property investors, it’s possible that some people within the network are also trying to find houses for sale. It means that you’ll be directly dealing with the competition.

6. Hire an Investor Friendly Real Estate Agent

Working with an investor friendly agent is another great way to find residential investment properties. Realtors and brokers can save you time, money, and frustration. They can also provide advice and guidance if you don’t know how to start with your real estate investment. Agents are experts in the industry and the local market, so they know exactly where to find properties for sale. 

Also, agents enjoy direct access to the MLS database and other real estate resources not accessible to the general public. If you hire someone with access to the MLS, you can see the available MLS listings. It can benefit you because MLS databases typically contain listings not posted in the local newspapers.

In addition, agents can use their knowledge and skills to help you find investment properties that perfectly fit your criteria and buy them at the best price possible. You can also use their services to find off-market properties (including those not yet listed on the MLS). Whether you are trying to find a single-family or multi-family home, real estate agents know where to search.

How to Find the Best Real Estate Agents to Buy an Investment Property

Don’t just go for any real estate agent. Make sure to hire a professional with sufficient investment property experience. You can follow these steps to find the best agents to work with:

Step 1: Know what to look for in an agent. For example, if you want to access the local MLS database, you should find an agent that can provide you access to MLS listings. 

Step 2: Visit the website of the local group of real estate agents in your area. You can also ask around your circle of family and friends to find agents they can recommend.

Step 3: You can reach out to different real estate professionals, not just agents. You can also work with a broker or realtor. Sometimes, you can work with bankers or lenders directly dealing in real estate. 

Step 4:  You may check reliable real estate platforms to find the best agents. For instance, you can check out Mashvisor and get a list of the best real estate agents in the US.

Pros and Cons of Hiring Real Estate Agents to Find Investment Properties

Hiring a real estate agent is one of the most popular and effective ways on how to look for investment properties. However, they also come with benefits and drawbacks, such as the following:

Pros

• Access to the MLS: As mentioned, real estate agents can provide you with access to the MLS, which may not be available to investors who are not licensed. MLS listings contain different property types, such as single-family, multi-family, and apartments.
• They are experts in real estate investing: Agents can share their knowledge and give you tips on investing in real estate. It may come in handy, particularly if you’re a new real estate investor.

Cons

• Extra cost: Depending on your agreement, you may need to pay a certain fee if you are with an agent.
• You need to build rapport: Since agents work with several clients, you need to build rapport with your agent to ensure that they will give you priority. Just like with networking with professionals, this may take time.

7. Partner With a Property Manager

Yet another less traditional way of finding income properties to invest in is working with a local property management company. Property managers have access to many real estate investors with rentals in the area. Some of these investors might be thinking about selling their property without having officially listed it yet.

A property manager you build a relationship with will be happy to inform you if any of their clients plan to sell. From their point of view, this means lost business, so they’ll be glad to refer you in case you are willing to have them manage your future property.

Moreover, this method offers access to already established rentals in the market. It means you will need to put less effort into making them operational income properties.

How to Work With Property Management Companies to Find Investment Properties

Buying investment properties with the help of a property manager might be easier said than done. But it is absolutely feasible and can bring excellent results if you follow the steps below:

Step 1: Search for property management companies with a strong presence in your preferred market.

Step 2: Start building relationships with property managers long before it’s time to look for houses for sale. This will ensure you’re the first to hear about any new opportunity from their network of other investors.

Step 3: You need to be able to offer something in return. In most cases, this will be to get the property manager to handle your new property once you purchase it.

Pros and Cons of Working With Property Management Companies to Find Rental Properties

Partnering with a property management representative is an unconventional way to find income properties. This means that it brings its own advantages and disadvantages, including:

Pros

• Access to rental properties: You will be buying functional rentals, so launching your own rental property business will be easier. Some of them might even be furnished.
• Benefit from the manager’s expertise: Like real estate agents, property managers are experts on the local rental market. They’ll be able to support you throughout the process.

Cons

• Limited to a single market: If you decide to find investment properties with the help of a property manager, you’ll be limited to the market where the manager works. Unless you work with a huge company, you won’t have nationwide access.
• Pressure to work with the manager: Although you will most likely not be legally bound to work with this property manager, you will feel pressure to choose them to manage your property. This is not ideal if you plan to be a landlord or Airbnb host on your own.

8. Work With Real Estate Wholesalers

Some real estate investors are able to find excellent deals by partnering up with house wholesalers. Real estate wholesaling refers to getting a property under contract with the original owner, marketing the house, and eventually assigning the contract to the end buyer, who can be a homeowner or an investor.

It means wholesalers have an incessant supply of properties for sale that might come at very reasonable purchase price levels. This is because many original owners are motivated sellers working under a short deadline, which means they are ready to part with their home under market value.

When working with wholesalers, you can get access to different types of properties, including single-family homes, townhouses, condos, apartments, and others. On the flip side, you might need to make a decision quickly, so you need to be able to conduct rental property analysis efficiently.

How to Use Wholesalers to Find Investment Properties for Sale

Using wholesalers to locate investment properties is less popular than most previous methods. However, it’s an equally valid approach that can bring high ROI due to the frequently lower prices. To get started with this, just follow these steps:

Step 1: Look for local real estate wholesalers in your market. You might talk to agents, other investors, home inspectors, appraisers, and other professionals to locate people doing wholesale deals.

Step 2: Get in touch with a wholesaler and introduce yourself. Start building a relationship even before you are ready to buy a property.

Step 3: Discuss your specific property needs with the wholesaler so that they get in touch with you as soon as they have something appropriate in their inventory. Moreover, you can simply ask what houses they have at the moment as there might be a good opportunity for you.

Pros and Cons of Using Wholesalers to Find Rental Properties for Sale

Partnering with house wholesalers offers excellent opportunities of how to find good investment properties in a less conventional manner. Before you go for it, though, you should know the pros and the cons, such as:

Pros

• Discounted rates: Frequently, such properties are available for much below the fair market value. It means you can optimize your return on investment, whether you look at the cash on cash return or the cap rate.
• Little competition from investors: Not many investors, especially beginners, buy from wholesalers. So, you will have less competition and can negotiate better terms.

Cons

• Limited financing options: When buying a property from a wholesaler, you don’t usually get to use a conventional mortgage. Some investment property loans might be available, but your options are definitely not that many.
• Distressed properties: Sometimes wholesalers deal with distressed properties of motivated sellers. When you buy from them, you get the property with no fixes or repairs.

9. Build Relationships With House Flippers

In addition, you can locate available rental properties for sale from people who specialize in fix-and-flips. This means they buy distressed homes from owners, implement major renovation work, and sell them for profit.

Good house flippers can take on and close on a new deal every couple of months at most. So, every few months, they have a new property for sale. The best thing about such an income property is that it has just been repaired, so you don’t need to do anything before renting it out. This helps you save both time and money.

How to Network With House Flippers to Find Residential Investment Properties

Even if this is not a strategy you have considered until now, you should give it a thought. And here are the steps that you need to follow in order to get started:

Step 1: Use different resources from your network to find people who do house flipping in the rental markets you’re interested in.

Step 2: Contact a few house flippers and see their current work, timeline, and final price. Evaluate if the price is really worth the ARV and if it will allow for good long term ROI.

Step 3: In case none of the deals underway seems like the right fit for you, stay in touch with the house flippers. Ask them to keep you in mind as soon as they start working on a new property.

Related: Invest in Long-Term Rental Properties: A Secure Investment Option

Pros and Cons of Networking With House Flippers to Find Rentals for Sale

Finding income properties through working with fix-and-flippers offers many opportunities that other strategies don’t. Consider both the benefits and drawbacks before deciding whether to jump into this method, focusing on the following:

Pros

• Freshly renovated properties: When you buy properties that have just been flipped, you end up with a fully refurbished house. You can start marketing and leasing immediately as soon as you find good tenants. You don’t have to worry about renovations for the foreseeable future.
• Reasonable competition: Fix-and-flip is not the first strategy that comes to the mind of the majority of real estate investors. So, you will most likely not face fierce competition from other investors.

Cons

• The purchase price might be high: As the property has just been renovated, the seller might ask for a relatively high price. You have to decide whether it’s worth it.
• Few financing alternatives: Buying a property from a house flipper might not come with numerous options to finance. You might need to pay all in cash.

10. Check Out Auctions

If you want to invest in off-market properties, especially foreclosures, bank-owned homes, REOs, and short-sale deals, you have to look into auctions. These can be courthouse or online auctions conducted on dedicated websites like Auction.com.

Auctions are places where many potential buyers bid on foreclosed properties, and usually, the best bidder wins. Each auction has its own specific rules and regulations, so it’s important to check them out and come prepared.

In most cases, savvy investors can find investment properties at very discounted prices at auctions. This is because the financier is looking to just recover the size of the remaining loan and doesn’t care about making a profit on top of this. On the flip side, you might be required to pay in cash, or at the very least. You need to be pre-approved for a valid loan type.

How to Buy Investment Properties at Auctions

Online and in-person real estate auctions are a great way to find rental properties below market value. Buying a house at an action requires:

Step 1: Search for auctions in the markets you’d like to invest in. You can visit the website of the courthouse or check out online auction websites like Auction.com.

Step 2: Study the rules of the specific auctions you’d like to attend in person or online.

Step 3: Do not bid more than what you can afford and what the property is worth. Do your rental market research and investment property analysis before the auction. Have the cash or be pre-approved for a qualifying real estate loan.

Pros and Cons of Buying Investment Properties at Auctions

Many investors refrain from finding income properties at auctions, while this is a totally valid way to locate promising investment opportunities. Just make sure to be aware of all pros and cons before getting started:

Pros

• Access to foreclosures: You can buy foreclosed, bank-owned, and short-sale properties at auctions. They sell for much less than the fair market value because of their status.
• Higher return on investment: A lower purchase price automatically translates into higher profitability from an investor’s perspective.

Cons

• Paying in cash: Many auctions require buyers to be able to pay fully in cash. This necessitates solid savings.
• Properties in a poor state: Foreclosures and short-sales might be in very bad condition. If owners didn’t have the financial resources to pay their mortgage, they probably didn’t have enough money to spend on maintenance and upkeep either.

11. Buy Directly From the Seller

The last strategy on how to find an investment property is to look for sellers directly. There are a few different ways in which you can identify and connect with property owners.

First, someone from your personal or professional network might consider selling their home without listing it publicly. All it takes is to listen carefully and to ask around. Buying FSBO is much easier and even cheaper than going through an agent.

Second, if you come across a property you like in the market where you intend to invest, you can search for the owner’s information and contact them. Sometimes people get convinced to sell their home if they get a good enough offer, even without having this intention initially. After all, it doesn’t hurt to ask. The worst that might happen is for your offer to get rejected.

How to Buy Houses for Sale From Sellers

Although trying to get a property from a seller might feel like a long shot, it’s doable and feasible. Indeed, many successful investors apply this strategy to find off-market deals and benefit from their many advantages. Here are the steps to go through:

Step 1: Ask around your network to see if someone might be interested in selling their house.

Step 2: Look for homes in the local area that have the potential to turn into profitable rental properties.

Step 3: Get in touch with the owner and make them a solid offer.

Pros and Cons of Buying Homes for Sale From Sellers

Before going for any investment strategy, you should take into account the advantages and disadvantages that come with it. In this case, they include:

Pros

• Off-market properties: When buying from a seller, you usually get access to deals that are not on the market yet. This means a discounted purchase price and a higher ROI.
• More options: If you are willing to buy a house directly from the seller, the sky’s the limit. You can go for virtually any property in the US market.

Cons

• High chance of rejection: When you try to get properties that are not officially listed yet, there is a high risk of the owner not being willing to sell. So, you might need to contact a few homeowners before closing a deal.
• A lot of networking is required: The more people you know–both real estate professionals and others–the easier it is to find an off-market property from the seller.

How to Find Investment Properties With Mashvisor

We’ve left the best strategy for last. Real estate investment platform Mashvisor is the best way to find investment properties for sale.

Mashvisor has several tools that make it the best website to find an investment property. Let’s take a look at each one of them:

Real Estate Heatmap

The best way to find income properties, whether to rent out long term or short term, is through using a heatmap. We bet you’ve seen heatmaps many times before, but maybe not in the context of real estate investing and buying investment properties.

A real estate heatmap is nothing complicated. It’s simply a visual representation of numerical data which relies on different colors to mark different number ranges or percentages. When real estate investors are trying to determine where to buy a rental property, they look for locations with low listing prices and high rent levels. In other words, they look for places with a high return on investment.

Thus, using Mashvisor’s heatmap facilitates finding investment properties by identifying and depicting the areas with the lowest and the highest values for all these important metrics. Essentially, using Mashvisor’s real estate heatmap facilitates the neighborhood analysis aspect of locating good investment opportunities.

Using the Mashvisor heatmap is easy. All investors need to do is enter the city they’re interested in and select the criterion they want to analyze. You can choose from the following filters:

Listing Price

Whether you are looking to invest in long term or Airbnb rentals, you have to make sure you can afford to buy an investment property. Mashvisor’s heatmap will answer the question, “How much will a real estate property cost me?” right away.

Mashvisor’s heatmap can show you the median property listing price in various neighborhoods or cities of your choice. This way, you can choose the right neighborhood that fits your budget. Remember, light blue shows you the areas for cheap rental properties, while hard blue points at the areas for more expensive investment properties.

Cash on Cash Return

Investors want to buy income properties to make money. Thus, when looking for the best rentals, you want to look at the average return on investment in a few neighborhoods to choose the right location.

Mashvisor’s heatmap focuses on the cash on cash return as a return on investment metric. It is the most accurate profitability metric because it tells you what your profit is while considering how much money you put into your investment cash.

So, using Mashvisor’s heatmap is the best strategy for choosing a profitable rental property because it shows you the average cash on cash return across neighborhoods. For profitable opportunities, just follow the dark blue color.

Rental Income

Rental income is how you make money in real estate investing. If your rental income exceeds your rental expenses significantly, you will have substantial positive cash flow, and that’s what all real estate investors want to get rich.

The rental income is an important asset to Mashvisor’s heatmap as it eliminates the need to waste your time searching for real estate comps to find out the average rental rates in a particular location. Now you can quickly and efficiently locate the areas with the highest rental income using a heatmap.

Airbnb Occupancy Rate

If you’re thinking of investing in Airbnb in specific, you should look for areas with a good Airbnb occupancy rate. Since Airbnb rentals are rented out daily, this is a major determinant of profitability for this kind of investment property.

So, you should always get familiar with the occupancy rate to find locations with strong potential. Once again, using Mashvisor’s heatmap will let you find the neighborhoods with the highest Airbnb occupancy rate to make the most profitable real estate investment within your budget range.

The Mashvisor real estate heatmap shortens and simplifies the usual process of searching for properties by helping real estate investors find the best neighborhood for fruitful investing.

Property Finder

The next Mashvisor tool to use is the Property Finder. It is the most straightforward answer to the question of how to find investment properties that will be profitable.

All you have to do is to enter your requirements, including:

• City or cities
• Budget
• Rental strategy
• Property type
• Number of bedrooms and bathrooms

Then, the Mashvisor Property Finder will provide you with a list of all the top-performing properties for your preferred strategy. The best part is that all of them are currently available for sale, and come with readily available rental property analysis. Moreover, listings are ordered from the highest cash on cash return down so you can focus on the best opportunities right away.

Additionally, Mashvisor gives you access to most MLS listings in any US market without holding a license or hiring an agent. Some off-market properties, including foreclosures and short-sales, are also available.

Investment Property Calculator

After you’ve found the most alluring properties to invest in with the help of the Property Finder, you need to estimate the expected expenses and profit. The Mashvisor investment property calculator simplifies the task by automatically comparing and analyzing different properties, whether you are interested in the short term or long term rental strategy.

With the tool, you get immediate access to all the important metrics, such as property price, startup costs, recurring expenses (including property taxes and insurance), occupancy rate, and rental income. In terms of ROI, you see estimates of the cash flow, cap rate, and cash on cash return.

The investment property calculator provides estimates on every available listing on the platform, so you can see the profitability of each property the moment you find it on the website. Moreover, you can use the tool to analyze off-market properties by entering the address.

What Makes Mashvisor Different from Other Ways to Find Investment Properties?

The unique thing about Mashvisor is that it is not only a property search website but also a real estate analytics platform. It offers a number of real estate investment tools that help users analyze the profitability of properties they find on the website or elsewhere. 

Thus, Mashvisor is a true one-stop-shop for finding income properties guaranteed to make positive cash flow and good ROI.

To start searching for the best investment properties for sale in any US market, sign up for a 7-day free trial of Mashvisor.

5 Characteristics of a Good Investment Property

What makes a good investment property, and how to make sure you’re buying the one that will be profitable? Let’s explore the five most important characteristics of good income properties and what to look for when you’re trying to find one:

1. Good Location

We cannot stress it enough, but the location of your property can either make or break your investment. It doesn’t matter whether you buy a small apartment building or an old multi-family home. If you’re investing in the wrong location, you’re setting yourself up for disaster. 

To find a good location for your investment properties, you must ensure that the area offers plenty of job opportunities. Also, the economy must be strong, and the population is growing. 

Keep in mind that most of the time, home prices in good locations are not cheap. However, they will not necessarily eat into your profits. It only means that you can expect your property to appreciate in value more quickly.

2. Demand for Housing

When trying to find a good location, you also need to figure out how strong the demand for housing is. What is the population growth rate? Is there a high demand for rentals? What do people in that area prefer to rent: a single-family home or a multi-family unit? Do the residents prefer to buy a house rather than rent one?

You should know how to find the price to rent ratio in your area of interest. A location with a high price to rent ratio means that residents find it more affordable to rent than buying a home.

In contrast, a low price to rent ratio indicates that home prices are low enough that people find it more practical to purchase a property instead of renting one.

3. Competitive Price

One more important thing to consider when finding a good investment property is its price. The property price is a big factor that directly affects your profit. If you want to make a good return on investment, you have to find a property that is reasonably priced based on the market. That’s why it’s important to check the real estate comps when shopping for a home. 

Real estate comps can help you determine that the price of the property is at par with or lower than the market value. If you don’t know how to find comps, it’s best to use a real estate analytics platform that can provide the neighborhood comps for you, like Mashvisor. Our website can help you compare properties of similar types and features. 

For instance, if you plan to buy a multi-family home, you should compare its price to other multi-family properties in the same area. Mashvisor will provide the comparable prices of different multi-family homes and the comparable rental income, expenses, and cash on cash return. In such a way, you’ll get an idea of how much profit you can earn.

4. Few Repairs Needed

Since you are buying a used property, it’s normal for it to come with flaws. However, ensure the issues can easily be fixed and you won’t need to spend much on repairs. If you’re unsure how to check the property’s physical condition, it’s best to work with a professional home inspector to help you assess the property.

It’s important that the property you are buying does not need major repairs. Make sure that there are no significant issues with the plumbing, which is one of the most difficult parts to maintain. For multi-family homes, unsure that the separate utility meters are working well. Also, set aside a good amount of budget for repairs to increase the value of your property. 

5. Positive Cash Flow

Another important characteristic of a good investment is that it generates positive cash flow right away. So, you need to find a property with rental expenses lower than its rental income.

But how to find real estate properties that can generate a monthly income higher than what they cost?

You can do so through a thorough investment property analysis. 

Mashvisor can help you by providing a comprehensive real estate analysis with all the necessary data. You can also calculate the cash flow of an investment property using Mashvisor’s rental property calculator. In addition, you’ll learn how to find the property’s cash on cash return and cap rate based on your financing option using the calculator.

Related: Where to Find the Best Comps Calculator

Mashvisor vs Zillow: Which Is Better?

If you plan to use online real estate platforms to find properties for sale, two of the most popular options are Mashvisor and Zillow.

But how does Mashvisor differ from Zillow, and vice versa? 

Both Mashvisor and Zillow allow potential buyers and investors to find a property for sale through their database. If you don’t know how to search for a property, you can simply go to the Mashvisor or Zillow website and use custom parameters like location, budget, or property type. You can also specify the number of bedrooms and bathrooms when searching.

For example, you can look for a multi-family property by customizing the property type into “multi-family.” You can also set your budget so that only those properties that meet your requirement will show in the results. However, if you’re a serious real estate investor and want to learn how to find the best income property, Mashvisor is a better option compared to Zillow.

How Is Mashvisor Different From Zillow?

With Mashvisor, you can enjoy more features and tools from a real estate investment platform, including real estate analytics, rental insights, neighborhood comps, and an investment property calculator. If you’re an investor who wants to know how to compare properties so you can choose the best option, such features and tools come in handy.

Similar to Mashvisor, you can also search for available properties for sale (including single-family, multi-family, condos, and apartments) through Zillow. However, Mashvisor is best for all types of investors. In contrast, Zillow is more geared towards homebuyers and investors who don’t need in-depth rental property analysis.

Zillow does not provide rental comps, neighborhood analytics, cash on cash return analysis, and a real estate calculator. On the other hand, Mashvisor provides investors with all the said tools and more. While Zillow lets you search for homes by price, rent, features, cost, and type, it lacks the property analysis tools mentioned above.

While Zillow is free, it doesn’t really provide investors with the necessary tools to learn how to evaluate investment properties and make the right investment decision. On the other hand, you can quickly do them through Mashvisor.

Related: What to Use Instead of Zillow Zestimate to Determine Property Values

Start Finding Good Investment Properties

As a new investor, you may not know the techniques to find investment properties yet, but the above-mentioned strategies will help you get started. Whether you’re looking for a long term or short term rental, numerous properties are available if you know where to search. You can also explore different ways rather than sticking to one method only. 

Various strategies will help you find income properties that are a good fit more quickly. For instance, you can ask your friends if they know of someone who’s selling a home, while at the same time, you can do an online search. If you limit yourself to only one approach, you basically reduce the potential options you can choose from. 

For easier and more efficient results, you can subscribe to Mashvisor to find a profitable investment property with a few clicks of a button. Whether you’re looking for an apartment building, condo, multi-family, or single-unit home, Mashvisor can help you in every step of your property search.

Mashvisor will help you locate the best area for your budget and aspirations in any US city. The platform will help you search for profitable rental properties for sale. Last but not least, it will help you analyze specific properties to buy and compare them to similar properties in the area. All in all, Mashvisor allows you to choose the best investment property to generate the most profits.

To learn more about how Mashvisor can turn into your best friend while finding the top investment properties for sale across the US, sign up for a 7-day free trial now, followed by 15% off for life.