You likely know investing in real estate can be one of the best ways to achieve financial success. However, it is no secret that buying rental properties can be a big step. Fortunately, with the help of True Property Management, you can get started with your first investment property to put you on the path to a more lucrative future.
1. Start With Thorough Research
Real estate is all about location. In Southern California, it may seem like anywhere can be profitable. However, in such a competitive market, every investor needs to carefully balance affordability and desirability. Doing plenty of research helps you make more informed decisions about which properties to purchase.
2. Secure Essential Financing
Of course, most people don’t have cash lying around to buy investment properties. This is okay. With appropriate financing, you can ensure your property earns a good return on investment without needing to have the capital upfront. In fact, according to Apartments.com, you can even buy investment properties in a number of ways with little or no money.
Take some time to research your financing options. Often, the mortgage is the biggest ongoing cost associated with an investment property. Saving yourself even a small amount each month can be worth the work.
3. Obtain the Right Help With the Purchase Process
Working with real estate experts can help secure a better deal. Someone who is familiar with residential properties in California can assist you with opportunities you may otherwise miss. Additionally, they can give you some insider knowledge on whether a deal is as good as it looks.
Like any other business function, buying real estate is often easiest when you have the right professional services in your corner. A realtor is a big part of this. However, you should also have a good accountant and potentially even a financial consultant.
4. Be Realistic About Your Management Abilities
Investment properties aren’t just a matter of purchasing a building and collecting rent, even if your notices are on your best invoice template. Properties need to be managed. Be realistic about how much time you can commit to managing your property. If you are buying a duplex and renting out one unit, it is reasonable to maintain a full-time job while also managing your property.
If, however, you are buying a multi unit apartment building, managing all the units may be a full-time job itself. It is often a good idea to acquire some help for managing properties. You can consider hiring someone directly. Alternatively, you may prefer working with a property management company.
5. Make Sure Your Property Is Competitive
Finally, you need to think about how competitive your property is with other rentals nearby. For example, dated interiors could set your property back. Similarly, you want to repair any items such as appliances that could present safety issues or address other major aesthetic drawbacks. Hiring a repair service can be a little tricky. However, it is worth the time to research reviews to find the right option and possible discounts. You will also likely need repairs in the future, so building a relationship with the right service provider is a good idea.
Get Ready to Buy Your First Property
By following the above tips, you can be in a good position to buy an investment property. This could become a lucrative path if you play your cards right.
This article is brought to you by True Property Management, which currently manages properties all across Orange County, California. From the beaches of Newport and Huntington Beach to Costa Mesa, Irvine, Orange, Santa Ana, Tustin, Mission Viejo, and everywhere in between. Our tremendous success is the direct result of landlords like you leaving their current management for someone they can trust like True Property Management. Virtually all of our clients were once with another management company. We know and understand your pain because we interview each of our landlords to better understand their needs and make it our mission to best serve you. For more information, please visit our website or contact us today!