Net Worth Challenge

My wife and I have been very pleased with the purchase of our duplex a couple years ago. Instead of purchasing a home, we decided to purchase a rental property that would “kick start” our rental portfolio. Our plan was to purchase an entire duplex building, live in one side, and rent the other side out. Although my wife originally wanted the house, she has been very happy with our accomodations and has no regrets when it comes to the choice we made. The side we live in is very nice and truly feels like a “little home.”

Well, it’s been a couple years and again my focus has turned to the rental market once again. I would like to purchase an additional property to add to our portfolio, but this time the focus is a little different. This time around we are looking for a house that would make a great home for my wife and I, but also would be a great rental when it came time for us to move on. We are going to keep the duplex and rent out both sides when we move out and into our new home. Eventually, when we outgrow this new home, the plan is to keep it and rent it out.

For the past several months, I have been actively searching through real estate listings and trying to keep a pulse on the market. I have stepped up my search during the last few weeks and have notified our realtor about our intentions. I have also organized the necessary paperwork in order to begin the bank pre-approval process. I expect to receive information from one bank tomorrow and will post that information when it comes in. Since I am only looking for preliminary rate information, I have asked the bank to not pull my credit report at this time. I do not want any unnecessary credit inquiries on our credit reports until we get closer to finding a property.

During my search I have been utilizing some great, online sources of information. I typically visit the following types of sites in order to get the best feel of the local market:

1. Local Realtor Websites - Used for routine home searches and for viewing photos of properties.
2. Google Maps - I often find that the local relator websites have clunky mapping interfaces that are difficult to use and not nearly as clear as Google’s alternative.
3. Zillow - This is a great site that attempts to show specific values of homes. In my area, the values are inflated beyond what the local market truly is priced at. However, I find this to be a useful tool when viewing specific neighborhoods. I can easily see where higher and lower priced homes are located compared to the home I am looking at. It gives me a great, neighborhood perspective.
4. County Tax Records - Logging onto my local county’s website allows me to sift through mountains of great data. First, I am able to pull up tax information and even recent sale information on specific houses. Second, I am able to compare the house I am looking at to the other houses on the same street. This is valuable information that was once only available to realtors. Now, because of technology and local county’s pushing for easier access to public records, I am able to utilize this information in my initial search.

These are just four of the main resources I use when I initially search for homes online. After I’ve compiled a list of homes that meets my criteria, then I’ll call up my local realtor and ask to visit the homes.