Investing in Alhambra real estate provides an excellent opportunity to grow your portfolio and build long-term wealth. It can be a challenge to balance risks versus potential when you’re choosing a property. How do you know it’s worth your investment?
When you’re looking for real estate in the Alhambra market, many of the general rules apply. You have to consider a property’s location and size, as well as condition and age. You’ll know it’s a good investment if you’re sure tenants will be willing to rent it for the amount of money you’re planning to charge.
In the end, it’s a very personal decision and it depends a lot on your investment goals. There are a few specific things you should consider before you invest in an Alhambra rental property.
Step One – Evaluate Your Investment Goals and See if the Property Fits
You need to know what a successful investment looks like to you.
What are you hoping to accomplish this year, next year, and in the next 10 years? The best property to buy will depend on whether you’re looking for cash flow or long term appreciation. You’ll need to know if you’re going to hold this property for five years or 15, and you’ll have to understand where the strengths and challenges of your investment strategies are found. While it may seem early to think about exit strategies, you’ll need to know when you’ve done everything you can with a particular property. Think long-term.
Decide what you want and figure out what makes the most sense financially for you now and in the future. This will help you identify investments that are worth your time and money.
Understand the Alhambra Rental Market
Before you invest in a rental property, make sure you understand the Alhambra rental market and its specific neighborhoods. You’ll need to know the tenant pool and what the best residents are looking for. You’ll need to understand rental values and how much you can expect to earn.
If you want to choose the right investment property, you’ll have to invest the time that’s required to research rental values, vacancy and occupancy rates, and neighborhood demographics. Do this before you buy so you aren’t surprised by what may or may not be working later.
Consider Costs and Maintenance
It’s better to over-plan what you’ll spend, especially when it comes to estimating the costs of maintaining your rental property. Many investors are surprised at what they have to pay to keep a home well-maintained. The home’s age and condition will impact your maintenance costs, and so will your tenant retention. If you have someone new moving in every year, you’ll have higher turnover costs.
The size of the property will also impact its maintenance costs, and the type of property you buy will also determine what you spend. Condos might have lower maintenance costs because there’s an HOA taking care of exterior maintenance issues. But, you’ll also have to include those HOA fees when you’re working out your cash projections and establishing ROI goals.
Work with Alhambra Property Managers
The best thing you can do is to talk to an Alhambra property manager before you buy a rental property. Your Realtor can do a great job helping you see potential homes and negotiate the best deal. With the advice and support of a property manager, you can decide whether or not the investment makes sense from a rental standpoint. We know the rental values, the tenant pool, and the market trends.
If you’re looking for a new rental property investment in Alhambra, contact us at ZenPro Property Management. We’d be happy to share our advice and resources.
