Buying an investment property in a fast-growing market like Yorba Linda can be a great idea. Southern California real estate is generally an investment that trends up over time. But if this is your first foray into looking for properties for investment purposes, there are a number of factors to take into consideration to choose the right property for you. Here are some factors to consider as you begin your real estate search.
Will you manage it yourself, or hire someone?
Being a landlord comes with responsibilities. It is not just about collecting the rent check and paying the mortgage and taxes on time. From screening prospective renters to being on call when an issue arises with the property, landlords need to be available 24/7 and willing to invest time into larger projects. Hiring a property manager eliminates that need, but adds an additional cost to the venture. Understanding this aspect will help you run the numbers when you're working to determine if a specific property will be profitable.
What type of physical property should you choose?
An investment property could be a condo, single family house, or multiple family house. Condos can be a good choice because they are a lower cost and owners have fewer responsibilities as the association manages many aspects of upkeep. But rents tend to be lower and they may have higher turnover. Single family properties can be a good choice as they often attract long-term renters and there is only a single individual or family to interface with. If you're up for the challenge and maximizing revenue is your goal, a multi-family property may be worth investigating.
What condition is the property in?
Choosing an investment property is somewhat different than choosing a house for yourself. When you are buying a house you'll live in, selecting for specific features that speak to your tastes is a natural fit. But when purchasing a home you plan to rent out, it is often better to cast a wider net. Look for properties that are in excellent condition, but generally have a "blank slate" feel. Hardwood floors, freshly painted white walls, and modern but modest appliances are often good benchmarks. Do not go for something that is dated, but think carefully before making a purchase in the luxury category as that target market often buys rather than rents.
If you are considering purchasing your first investment property, contact the Edie Israel Team today. Our experienced real estate agents will work with you to understand your goals and find just the right Yorba Linda investment property for your needs.