How To Find A Great Investment Property
Over the years, we’ve had many great conversations with our clients about owning investment properties in Southern California and one of the most common questions that come up is about how to find a great investment opportunity.
This is an understandable question to ask because for someone who may not own rental Real Estate yet there may be many variables or potential questions that are stopping you from buying an investment property.
In this article, we will provide you with a simple strategy you can use to buy your first rental in Southern California or anywhere in the nation.
#1 – It Has to Be in A Great Location
The most common slogan when it comes to buying residential Real Estate is “location, location, location” and this is also true when it comes to owning investment properties.
The rental that you purchase has to be in a great location that’s part of a great school district, near stores, close to public transportation and also major employers.
If your rental property meets all of the above criteria then it would certainly qualify as a great rental property and the property would also attract the right tenant who is willing to pay a premium rent for living in an ideal location.
#2 – The Property Has to Have Good Resale Value
Another important thing to consider is if the property has a good resale value or not because you may want to sell the property in the future for top dollar, and you certainly do not want to have to wait forever for it to sell
#3 – What Are the Numbers?
Last of all, but most important, what are the numbers?
- What are you going to buy the property for?
- What is your rent going to be?
- What will your expenses be?
- Will you have a positive or negative cash flow? Or will you break even?
Once you are able to answer these questions with confidence, and the property that you want to purchase matches the criteria in this article, you can then move forward with buying your first rental property knowing that it’s going to produce ROI for years to come.
Contact the Fred Sed Group
Do you have questions about investing in Real Estate? If we can help you in any way, we love working with investors in Southern California. Our company also has an extensive network of partners across the United States that have fantastic cash flow, Real Estate investment opportunities including single family and multifamily properties.