When you are getting ready to buy an investment property in Contra Costa county, the first thing you want to do is take a moment and consider your goals. The type of property you buy will depend on your investing purpose. You might be looking for an immediate return on your investment, or maybe you just expect to break even. You might want a long term cash flow or you might want to rent something out now and then live in it yourself later on. Talking to a property manager will help you manage your expectations for what kind of return you will get on your investment. A property manager will know the rental market and be able to advise you on what kind of property will rent best and for the most money.
Talk to your tax expert or accountant as well, particularly about how your investment property purchase will affect your other income and tax status. Your financial advisor can give you advice based on your current financial situation and your property manager can help you predict how much money you will earn off your investment. The market value is different for rentals, and you will want to consider the costs of purchasing and maintaining a home before you buy.
Generally speaking, properties that can accommodate families are always popular in the rental market. Anything in good condition with three or four bedrooms will get you a reliable rental income, so if you can find a property like that for a good price, you will be in good shape. Take a look at other properties on the market that are similar in size, location and condition. Finding out what they rent for can help you figure out how much you will be able to ask.
As property managers, we are not trying to sell you anything. We want to help you determine the value of the property you are considering buying. When you buy an investment property, consider using a property manager that belongs to the National Association of Residential Property Managers (NARPM). This is a great organization with a good code of ethics. Starting there will help.
Remember there is an inherent cost of doing business in property management. You need to allow for that when you determine how much you can spend.Always set aside a reserve so that when repairs come up or a resident moves out, you are prepared for those expenses and there will not be any stress to you or strain on your budget.
We are always happy to help investment property owners determine where and what to buy, based on the rental market. If you have any questions, please contact PURE Property Management before you buy your investment property.