No two real estate investments are similar. With a rental property, you are aiming to make an addition to your long term portfolio. This starts with going for the right investment properties in California, an understanding of the local market and where it may be headed. Experienced real estate investment brokers in California, BGK Investments, here share the 4 most important things you must look for in a rental property purchase.
With a rental property, the market is critical. Most tenants lay emphasis on location more than the amenities offered. Before you purchase your rental investment properties in California, you need to have a look at the market and its potential. Find out about the neighborhood, local school systems, unemployment rates, foreclosures, crime statistics, new housing permits and everything else that may matter to someone who chooses to live there. For example, major corporate area laying employees off is not a good sign for your rental real estate investments.
Before you decide to buy certain investment properties in California, get a grip on the numbers that will directly impact your investment. It begins with your purchase price. You should negotiate hard since the purchase price will directly affect the monthly cash flow. Then you need to know all of the costs – interest, taxes, insurance, utility costs, property management fees, maintenance costs, lawn care, snow removal and much more. And then calculate your projected rental price. It is advisable to keep the estimate conservative. The leading real estate investments brokers in California, BGK Investments, can help with number crunching.
You need to find out about other rental properties, what they offer and how it compares with your property. All things being equal, renters will look at the property they feel the most comfortable in. All of this will affect how much rent you can charge and the return on your real estate investments in California.
RETURN ON INVESTMENT
You want to own properties that bring you good returns. Is driveway and street parking limited? Is there a major college or university nearby? If you are going to have to deal with a recurring issue, is it worth the return? Before you say yes to any investment properties in California property you need to take a look at the risks with respect to a conservative estimate of returns.
Many investors are riding a near all-time high of rental investment properties California. But before you make your next real estate investments in California, you should keep these four areas in mind.