How to Find Investment Properties: 5 Strategies

Finding an investment property for sale differs from finding a home. Buyers need to focus on a unique set of features and characteristics in order to attract renters, get positive cash flow, and generate a profit.

In this article, we’ll show how to find investment properties across the US market in 5 unique ways. We’ll look at what each of these strategies entails, how much it costs, and what its pros and cons are. We’ll also evaluate what type of properties and investors it is best for.

The 5 best unique ways to find investment properties for sale are:

• Use Awning.com: Best Overall Way to Find Investment Properties
• Reach Out to Property Managers: Best for Off Market Properties
• Hire an Investor-Friendly Agent: Best for Local Deals
• Subscribe to Mashvisor: Best for Online Research
• Attend Online and Offline Auctions: Best for Experienced Investors

Use Awning.com: Best Overall Way to Find Investment Properties

The absolute best way to find investment properties for sale to rent out on a short-term or long-term basis is to use the Awning Top Deals tool. There you can find real estate listings that promise to turn into the most profitable opportunities currently available on the market.

How to Find Investment Properties with Awning

Searching for rental properties for sale on Awning is easy. All that’s needed is to know your budget and the performance you hope to achieve.

First, you need to decide whether to focus your search on vacation rentals or long-term rentals. Then, you can use the following filters to focus your search:

• Market
• Price
• Number of bedrooms
• Number of bathrooms
• Year built
• Square footage
• Lot size
• Maximum HOA fees
• Amenities
• Cap rate
• Cash on cash return
• Appreciation
• Monthly revenue
• Neighborhood score
• School score
• Renovation amount required
• Number of days on Awning

This comprehensive set of criteria allows both beginner and experienced real estate investors to find the exact properties they’re interested in.

That’s not all. Investors can access detailed rental property analysis for each Awning listing. This analysis shows all the qualitative and quantitative property characteristics that you need in order to confirm that it will be a profitable investment opportunity.

In terms of rental data analytics, you can see the expected:

• Purchase price
• Renovation cost
• After repair value (ARV)
• Cost of furnishing
• Monthly revenue
• Monthly cash flow
• Annual appreciation rate
• 10-year annual gross revenue and operating income
• Detailed breakdown of 10-year annual operating expenses
• Property tax
• Insurance
• Utilities
• Repairs/maintenance
• Contract services
• Property management
• HOA fees
• Airbnb service fee (for vacation rentals)
• Cost of supplies
• Lawn care
• Swimming pool and hot tub maintenance
• Internet and cable
• Others
• 10-year annual cash flow break down
• 10-year tax benefits and deductions
• Operating expenses
• Mortgage interest
• Depreciation10-year equity accumulation
• 10-year sale analysis
• 10-year investment returns
• Cap rate
• Cash on cash return
• IRR
• ROI

While each real estate listing available on Awning is recommended as either a vacation rental or a long-term rental, you can access analysis for both strategies. In this way, you can find a property that promises a good cap rate for both strategies should you change your approach in a few years.

The provided analysis is interactive. You can change the input values and immediately see how this affects the investment results. For example, if you think you can negotiate a lower purchase price, you can check out how this will affect the ROI.

Besides all the property information, the Awning investment analysis provides detailed information about the neighborhood and the amenities. After all, location is one of the most important factors in real estate investing, and investors need to ensure that their selected market has all it takes to bring good ROI.

Cost of Using Awning

Using the Awning website to find investment properties is free, no matter how many markets or properties you’d like to check out.

What Type of Properties You Can Find with Awning

The Awning Top Deals provide investors with access to both vacation rentals and long-term rentals for sale. They include all residential property types, such as single-family homes, townhouses, condos, apartments, and small multifamily properties. They have between 1 and 5+ bedrooms. Some listings are even completely furnished.

In terms of market coverage, Awning listings are available across the entire US.

This makes Awning the perfect platform for investors with different budgets and interests and those who’d like to diversify their portfolios.

Pros and Cons of Finding Investment Properties with Awning

The advantages of searching for rental properties for sale with the help of Awning are many more than the disadvantages.

Pros

The main pros of using the Awning platform include:

• Access to top-performing investment properties
• Searching for both short-term and long-term rentals
• Properties available across the entire US market
• Multiple filters
• Detailed investment property analysis
• Free unlimited search
• Comprehensive investment services provided by Awning, including brokerage, insurance, interior design, furnishing, and Airbnb management

Cons

The only con of using the Awning Top Deals is:

• No off market properties

How to Get Started

All you need to do in order to locate the best rental property investments across the US housing market is to visit the Awning website and click on the “Top Deals” tab. You don’t even need a subscription, not to mention a paid fee.

As soon as you’ve been able to identify a property that meets your budget and ROI expectations, you can connect with an Awning agent. Awning’s agents are available in all 50 US states and have experience working with investors, not just homeowners. If you decide to run an Airbnb business, you can use the Awning vacation rental management services.

Reach Out to Property Managers: Best for Off Market Properties

Another unique way to find investment properties that’s not widely used by many investors is to get in touch with property managers in the market where you’d like to buy. The best property management companies have a wide network of real estate investors who are constantly buying and selling properties. They frequently know of property owners who’re planning to sell a property but haven’t listed it for sale yet. That’s what makes this the best approach for accessing off market investment opportunities.

How to Find Investment Properties Through Property Managers

Finding investment properties with the help of property management companies requires superior networking and personal skills. It will help a lot if you already have a good relationship with a property manager in the market where you’d like to invest. If not, you can still contact the local office, tell them about your interest in buying an off market property, and ask them if they know of an investor who might plan to sell soon.

Actually, property managers will be happy to help you since their client selling a property means that they are losing a rental in their management portfolio. You can help them fill in this gap by promising to entrust your newly got investment to them.

Before buying a rental property in this way, however, conduct analysis to confirm that it will bring good rental income and strong ROI. The property manager you work with can help you with this as they already know the prevailing rates in the local market.

Cost of Using Property Managers

This strategy costs nothing in terms of fees. But you should factor in the time that it will take you to network and to establish a relationship with a helpful property manager.

You might need to commit to having your investment property managed by this company should they help you find one.

What Type of Properties You Can Find Through Property Managers

You can use this method to search for properties for any rental strategy and of any type. If you already know whether you want to invest in short-term or long-term rentals and whether you’d like to buy a single-family home or an apartment, you just need to focus on property managers who work with this specific property type.

For instance, here you can find the best apartment management companies and the best multifamily management companies where you should focus your efforts.

In addition, you can find off market properties in any market, as long as you get in touch with a local property manager.

On the flip side, if you’d like to explore a few different locations and property options, you will need to network with several property managers.

Pros and Cons of Finding Investment Properties Through Property Managers

This way of searching for investment properties for sale has its own benefits and drawbacks.

Pros

The most important pros are:

• Off market properties usually sell below market value.
• Applicable to any US market
• Getting help from a local real estate professional
• Buying a property that’s already working as a rental
• Free of charge

Cons

Some cons to consider include:

• No readily available analysis
• Market coverage limited to where the property manager operates
• Property types limited to the manager’s coverage
• You might need to commit to hiring the property management company.

How to Get Started

In order to look for off market properties with the help of property managers, you need to find a rental management company that specializes in the type of property that you’re interested in.

For example, if you’d like to invest in an Airbnb rental, you can try to connect with a representative of Awning, Vacasa, Air Concierge, or Casago. In case you want to buy a long-term rental, get in touch with a local property manager at HomeRiver Group, Mynd, or Evernest.

Hire an Investor-Friendly Agent: Best for Local Deals

Yet another way to find good investment properties for sale is to work with a real estate agent or broker. It’s important to hire an agent who has experience working with rental property investors in specific as they’ll be able to help you locate profitable deals and get your rental property business started.

How to Find Investment Properties Through an Agent

Finding rental properties for sale using this method requires identifying an agent who focuses on working with real estate investors and not homebuyers and home sellers. Buying an investment property differs from buying a home. An investor friendly agent will help you focus your search on properties that have the potential to turn into a profitable investment opportunity. They’ll recommend the best neighborhoods and the most appropriate listings and help you perform the rental property analysis.

The best way to find investor friendly real estate agents is through Awning. There are two options for this. First, investors can be paired up with a member of the Awning Partner Agent program, providing access to vetted agents and brokers in each US market who are guaranteed to be top-performers. Second, investors can work with the Awning in-house brokerage which specializes only in investment properties. In-house agents and brokers have access to the latest real estate technology to help you analyze deals to assure profitability.

Other ways in which you can find investor friendly agents include referrals from fellow investors, real estate in-person and online meetups, and online investment forums.

Cost of Working with an Agent

In most cases, buying a real estate property with an agent should cost you nothing. In the US housing market, the property seller, not the property buyer covers the agent fees and commissions. However, some investor friendly agents might have special programs for investors that charge a certain fee.

What Type of Properties You Can Find Through an Agent

Hiring a real estate agent or broker can help you identify various rental types and property types. This strategy can work in any US market. But each agent you work with will focus on a single market, making this the best strategy for local deals. If you’d like to explore opportunities in several markets, hire more than one agent.

The method is suitable for beginner investors who have little real estate experience and knowledge. An agent will help them not only find properties for sale but also negotiate, navigate through the legal requirements, close the deal, and launch a rental property business.

Pros and Cons of Finding Investment Properties Through an Agent

Working with investor friendly real estate agents has some advantages and disadvantages.

Pros

The most considerable pros include:

• Access to MLS listings, off market properties, pocket listings, and others
• Access to different rental and property types
• Partnering with an experienced local real estate professional
• Access to market and investment advice and different experts including lenders, home inspectors, appraisers, contractors, property managers, etc.
• Help with negotiating the best price and the best terms
• Closing deals faster

Cons

The most significant pros include:

• Limited market coverage
• Loss of some control to the agent
• Working with an agent who’s overwhelmed with too many clients and deals

How to Get Started

The first step is finding an agent that not only has the experience and skills but whom you can also trust. The easiest way to get started is to ask to be connected with an Awning Partner Agent. You can schedule a call via the Awning website or call/text 415-223-2830.

Once you’ve been paired with a recommended agent in your market of interest, you should have an in-person or phone interview with them to talk about your investment goals and to inquire about the agent’s experience and practices. This interview will help you gauge if this agent is the right choice for you.

Subscribe to Mashvisor: Best for Online Research

An efficient way to search for rental properties for sale on the internet is the Mashvisor platform. You can find both short-term and long-term rentals with ready analysis.

How to Find Investment Properties with Mashvisor

On the home page, investors can enter their market to look for properties for sale. Then, they can narrow down their search with the following filters:

• Budget
• Number of rooms
• Rental income
• Year built
• Property size
• Property type
• Cash on cash return
• Cap rate

Most properties are MLS listings, with limited off market opportunities.

Each property listing comes with an analysis of how it is expected to perform as a short-term or long-term rental.

Cost of Using Mashvisor

Mashvisor offers a 7-day free trial. Afterwards, you need to get a quarterly or annual subscription which ranges between $24.99/month and $119.99/month. There are 3 different plans that serve the needs of various investors. This pricing is rather steep, compared to all the free alternative methods.

What Type of Properties You Can Find with Mashvisor

Investors can find Airbnb and long-term rental properties for sale. These include different types such as single-family homes, townhouses, condos, apartments, and multifamily homes.

Pros and Cons of Finding Investment Properties with Mashvisor

Searching for investment properties online with Mashvisor has some advantages and disadvantages.

Pros

The most significant pros are:

• Both short-term and long-term rentals
• Comprehensive analysis
• Focus on investment properties

Cons

The major cons include:

• Expensive subscription fee
• Limited off market properties
• No brokerage services
• Limited access to other real estate services and professionals

How to Get Started

To look for an investment property on the Mashvisor website, investors need to sign up for a 7-day free trial, followed by a paid subscription.

Attend Online and Offline Auctions: Best for Experienced Investors

If you’re an experienced investor and wonder how to find investment properties to add to your portfolio, you can check out real estate auctions. The best thing about this strategy is that you can get access to off market deals including foreclosures, pre-foreclosures, short sales, bank-owned properties (REO), and even government-owned homes, which usually sell at very discounted prices. However, they require on-the-spot payment and sometimes major repairs, which makes them the best choice for investors with capital and experience.

How to Find Investment Properties at Real Estate Auctions

You can buy a real estate property at both live auctions and online auctions. You can find the time and place of live auctions besides the properties for sale at county courthouse websites, bank websites, and even in local newspapers. Meanwhile, the best websites for online auctions are Auction.com, Hubzu, Williams & Williams, and HUDHomesUSA.

For live events, you need to register in order to attend the auction and bid on a property. For online auctions, you need to create an online account in order to bid.

In most cases, property listings will provide information about the property characteristics and current state, but there won’t be any investment analysis. That’s why you need to conduct your own analysis before deciding on a house to ensure that it will generate positive cash flow and good ROI. The Awning Cap Rate Calculator and Airbnb Estimator can help you with this.

Cost of Real Estate Auctions

Real estate auction fees differ, but the average is around 10% of the property price. While this might sound like a lot, properties sold at auctions are heavily discounted, so the extra fee is more than worth it.

Before you decide to buy an investment property at an auction, you should be prepared to pay in cash, on the spot. This means that you should have already done your analysis and that you need to have the financial resources.

There are loans that might work for properties sold at auctions, but you would need to make sure that the auction house accepts these. Also, you’d need to be pre-qualified in order to purchase a house in this way.

Many properties sold at auctions are distressed homes, so they might require major repairs and fixes before getting in a rentable state. That’s something you should factor in your investment property analysis. Keep in mind that houses are bought in an as-is state, and in most cases there is no option for a property showing and a home inspection.

What Type of Properties You Can Find at Real Estate Auctions

You can find different types of residential (as well as commercial) properties at auctions, including single-family homes, townhomes, apartments, etc. Most of them are primary homes, but some might also be rental properties where the investor could not cover the mortgage payments. Most times, this is because of poor property management rather than lack of potential, so you shouldn’t be discouraged from buying an investment property at an auction. As always, you need to analyze the potential before purchasing.

Frequently, the properties sold at auctions are distressed because owners could not keep up with regular maintenance work. Thus, try to estimate the expected cost of renovations and repairs to make sure that the ARV will be worth it.

Pros and Cons of Finding Investment Properties at Real Estate Auctions

Like any of the other best ways to find investment properties, auctions come with their own benefits and drawbacks.

Pros

The most sizeable pros are:

• Below market value prices
• Strong ROI potential
• Less competition than with MLS listings
• Various property types
• Properties available in all states

Cons

The main cons to take into consideration include:

• Frequently distressed properties
• No property showings, home inspections, and appraisals
• Limited financing opportunities
• Auction house fees
• Cannot start renting out right away

How to Get Started

To get started with this strategy for finding investment properties for sale, you need to visit the website of your county, the websites of local and national banks, and the online auctions websites listed above.

Takeaway

These are the 5 best ways to find investment properties for sale in the US residential market. Whether you want to buy a short-term or long-term rental, the best place to look is Awning. You can benefit from multiple filters to concentrate your search, after which you get access to comprehensive, interactive analysis. If you’d like to invest in an off market property to benefit from the lower price, you can talk to a property manager or check out auctions. Regardless of which strategy you choose, remember to analyze both the market and the property before buying. Profitable real estate investing decisions are based on solid data and in-depth analysis.