Have you decided to bite the bullet and invest in property in the California Bay Area?
Housing prices are still rather expensive in the state, and this offers many opportunities for potential landlords. If you buy an investment property, you can earn a high rental income if you work wisely.
So how do you landlords make a real estate investment if they don't have a lot of cash?
Here's what you can do:
Focus on Location
As a first-time landlord, your priority should be on the property's location. In a good location, a studio apartment and a four-bedroom mansion will both be in demand.
Don't worry if you can't afford a larger property at present. Your main focus should be on buying an investment property in a great neighborhood.
Rental Valuation
Once you've found a few great properties, you'll have to narrow down which one is the best investment. You want to choose the one that'll likely bring in the highest rental income.
You can conduct a rental valuation for each property. This is when you'll receive an estimated quote for potential rental income. You'll get a realistic amount of what you can charge for the property.
You don't have to charge this exact amount. However, rental valuations offer a reasonable rate. In most cases, it's best to choose the property that has the highest rental valuation.
Find Your Tenants
One of the biggest risks with any real estate investment is whether you'll find a tenant. Even if you invest in a valuable property, it's possible that you'll soon see your asset as a liability.
The best way to counter this is to find high-quality tenants. You'll need to find tenants who have financial stability. You'll need to ensure that they also want to renew their lease.
This ensures that you'll have regular cash flow. The right tenant will help you pay off your mortgage and earn profit from your investment property.
Invest in Property Management
After buying an investment property, you may feel reluctant to spend more money on a property manager. But your investment will pay off in the long run.
A property manager will take on the most challenging tasks for you. Once you've bought an investment property, you can hand over most responsibilities to them.
They can help you find tenants. They can also resolve disputes, collect rent payments, and hire contractors. With their assistance, you'll be able to turn your investment property into a valuable asset.
That's How Landlords Can Succeed
Now you know how landlords can succeed with a small investment property.
Your first step should be to find the best locations within the Bay Area. Your priority has to be on the location rather than the property's size. Once you've narrowed down a few properties, conduct a rental valuation before you buy one.
You'll have to take the time to find the best tenant to secure consistent rental income. To succeed as a landlord, you should have a property manager to help you.
Blue Line Property Management has served several landlords throughout the Bay Area. Contact us today!
