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How to Invest
The Call
The first step is a discovery call with me (or another investment-savvy agent). This is where you determine if we’re a good fit for each other’s goals and gain additional info from questions you have stacked up.
I specialize in long-term rentals, Padsplit properties, and small to mid-sized multifamily properties.
The call is all about alignment. We’ll discuss your investment goals and review market conditions. For example:
- If you’re looking to quit your job in three years using long-term rentals to replace income, I might advise against it.
- If you’re parking capital for a passive investment, long-term rentals could be a great fit.
By the end of the call, you'll have a better sense of what’s feasible and a roadmap for preparation—whether that's pre-approval, exploring funding options, or reevaluating your strategy.
Pre-Approval or Proof of Funds
To make offers and be taken seriously, you’ll need either pre-approval for financing or proof of funds if buying in cash. I can connect you with lenders who specialize in investment properties, whether you need a DSCR loan, hard money, or private funding.
Unlike buying a primary residence, where budgets often exceed comfort zones, investment property financing revolves around the numbers. If a property cash flows and fits your strategy, it works—regardless of your maximum approval amount.
Once we establish your budget, we can tailor your property search. For instance, duplexes might meet your goals, but if your budget is $150,000, we’ll need to explore alternative options.
Loan products, rates, and alternatives change frequently. Reach out to me to discuss the current state of the market.
MLS or Off-Market Search Begins
As highlighted in BiggerPockets Podcast Episode #879, working with an experienced local agent to set up MLS searches is invaluable. These searches are highly customizable, far beyond what platforms like Zillow or Redfin offer, but they require expertise to set up effectively.
I've learned the hard way that some filters look nice and perfect, but are actually detrimental because agents commonly ignore these fields when inputting listings.
I’ll create a search based on your criteria, ensuring you don’t miss opportunities or waste time sifting through irrelevant listings. Your MLS portal will email you daily with new listings, and you can review older ones anytime. We’ll check in weekly to adjust filters, evaluate properties, and answer questions about rent estimates, comps, or other details.
If you're looking for off-market deals, the process differs slightly. While I have access to some off-market channels, these transactions often lack contingencies like inspection periods or financing clauses. This guide doesn’t cover off-market processes in depth, but feel free to schedule a call with me to discuss. I often don't recommend off-market to new investors. Lack of inspection periods, contingencies, and the elevated risk is not always a welcome starting point.
Analyzing Deals
This is a big section that sets investing apart from regular home-buying.
Running numbers is time consuming and requires local market knowledge. Whether you're buying any type of rental property in Tampa or in the world, investors run numbers and use local experts until they're comfortable enough in a particular market.
Let's take long term rentals as an example. I can tell you that they have not made much financial sense for cash-flow investors the last couple years. In some situations, they can work, but not well. Go to any investment calculator (I have a two on my website for free) and let's input the following:
- purchase price (PP)
- estimated rents
- interest rate
- estimated taxes
- estimated insurance
With these figures, we can come close to analyzing the deal, but we still want to add in some reserves and factor in any property management fee you'll have. Common figures used are 15% for reserves (maintenance, capex, and vacancy) and 8% for the property management fee.
When we see a property that look like it could work on paper, we need to analyze it. Analysis runs even deeper for Padsplit or Airbnb properties.
Location
During the crazy buying climate of 2021-2023, many investors were ignoring location and neighborhoods because inventory was so limited and pricing kept going higher regardless of location.
Many investors are now kicking themselves for purchasing in areas they never would have in the current market. It's a good lesson that even when we're in a bull market, don't disregard the fundamentals. Location location location.
Driving for Dollars
A tactic commonly used by real estate investors is driving around neighborhoods they’re interested in to find good deals.
Yes... It really is that simple.
These investors would get in a car, drive around the area they are interested in, and look for homes that give signs of a potentially motivated seller. This includes homes with a “for sale by owner” sign, homes in disrepair or showing signs of neglect.
Next, these investors would knock on the door, and introduce themselves to the owners. They let the homeowners know they’re interested in buying a home in the area, and would ask the homeowners if they could point you to someone looking to sell, or if they themselves are interested in selling their home.
If no one answers the door, even after several attempts, not all is lost. These investors could do a property search in the city’s public records or a reverse phone number search to find the owner’s contact information.
Look into tax-delinquent homes
As you know, every homeowner in the US must pay his/her yearly property taxes. But if they fail to pay these taxes, their name is added to the county’s treasurer’s “Tax Delinquent List.”
If enough time goes by (1-5 years, depending on the state) and the homeowner doesn’t pay those delinquent taxes, the county takes possession of the home via a tax foreclosure. Then, the house is auctioned off to recuperate those missing taxes (from which the homeowners would get $0 in return).
Believe it or not, tax delinquent lists are part of the public record. You can have access to your local list by asking for it in your county treasurer’s office, and paying a fee to obtain it.
This list is filled with homeowners that have a HUGE motivation to sell their property, especially if they haven’t paid their property taxes in years. If they’re only a year or two away from losing their home to a tax foreclosure, and they could be willing to sell their home or property for pennies on the dollar.
Of course, as you may expect, many of these homes fall squarely into fixer-upper territory, and would require you to have plenty of capital to get them into shape.
Showings and Submitting Offers
For on-market properties, you typically conduct extensive research—running numbers, analyzing comps, and assessing the location—before touring in person. Tenant-occupied properties often can't be viewed until after an offer is accepted to avoid disrupting tenants but it depends.
In Florida, we use the "As Is" contract, which is 13 pages long and includes key contingencies to protect your earnest money.
Key contingencies safeguard your earnest money:
- Inspection Period: This negotiated timeframe (often 5–15 days) allows you to cancel the contract if the property doesn't meet your expectations.
- Financing Contingency: Typically lasting 30 days, this protects you if your loan falls through, allowing you to back out and recover your earnest money.
- Appraisal: this is wrapped in the financing contingency
When submitting offers, we’ll consider the market climate:
- Competitive Markets: Quick closings, higher earnest money deposits, and shorter inspection periods.
- Buyers’ Markets: Greater leverage for negotiating price reductions on high-days-on-market properties.
For off-market properties, you or your agent can negotiate and draft the necessary documents to go under contract. Often times they are assignment contracts and look shorter and different than the typical real estate contract written by the Florida BAR. They also do not usually contain the same protections and contingencies.
Once you're under contract
This is where the work really starts. You will want to schedule inspections quickly.
Many buyers prefer the full comprehensive, 4-point, wind mitigation, and termite reports. Some properties have pools and foundation inspections may be a good idea if you see something off.
Insurance quotes are needed (especially in Florida) to assess cash flow. Insurance agents want a completed 4point and wind mitigation report, however, they might be able to give you a rough estimate before if you really need to know sooner.
Depending on your financing, many damages could disallow you to close. Roofs older than 15 years typically need to be replaced before you can close with a conventional loan. Private or hard money doesn't really care.
Title will also start getting involved and may order a survey for you based on you or your lenders requirements. They'll run lien and permit searches to verify the property is clean, and provide you with those reports.
Closed
If you're property is not fully occupied, have your property manager lined up and ready to go BEFORE the day of close. They'll want to start preparing marketing and leasing details early.
Congrats on your new investment property!
Investing in real estate is a powerful way to build wealth and achieve financial freedom, but it requires careful planning, due diligence, and the right strategy. By understanding each step of the process—from an initial call to closing—you can approach your investment with confidence and clarity. Whether you’re a first-time investor or adding to your portfolio, working with a knowledgeable agent ensures you stay informed, protected, and positioned for success. Ready to take the next step? Let’s connect and make your real estate goals a reality.