Risks and Rewards of Investing in Arcadia Real Estate - Article Banner

Whether you’re thinking about investing in Arcadia real estate for the first time or you’re looking for reasons to expand your existing portfolio into our market, we want to talk about some of the risks and rewards you can expect with an investment property here. 

Knowledge is power, especially when we’re talking about real estate investments. Think about what you have to gain and what will likely challenge you when you decide to buy an investment property in Arcadia

Arcadia Investment Property Rewards  

Let’s start with the positives. What types of benefits can you enjoy by investing in Arcadia rental homes? 

  • For starters, you’ll enjoy a robust rental market. Right now, rents are high, and we don’t expect them to come down any time soon. These high rents are driven by inflation and also an entire population of renters who are feeling priced out of the sales market. 
  • A large tenant pool. You won’t have to worry about losing money on a vacant investment property. You can expect to keep it occupied. Tenants are competing with each other in order to lease well-maintained homes in desirable locations. Your rental income will be consistent and recurring. 
  • Appreciating assets. The investment property you buy today will be worth far more in five years, 10 years, and 20 years. The longer you hold onto your asset, the more you earn on it. There’s also a buildup in equity. Your tenants are essentially helping you pay down the mortgage you might have on your property. 

When you invest in Arcadia real estate, you’re entering a market that’s strong economically. The population of tenants is stable and qualified. There are numerous benefits to investing here, and most of them are financial. But, you’ll also be part of a growing community that’s proud of its diversity, high quality of life, and plans for the future. 

Risks to Investing in Arcadia Real Estate 

Every investment comes with risks. This is true of investing in rental property as well. Arcadia is a great rental market, but there are still some things to prepare for if you want to invest here:

  • California’s rental laws are among the strictest in the nation. You’ll need to comply with statewide rent control, state fair housing laws that go further than the federal law, just cause eviction requirements, and a host of mandates around Section 8 tenants, habitability issues, security deposit returns, and even service animals and companion animals. It’s risky and if you cannot keep up with the laws, you’ll need some professional help.
  • This is an expensive market to enter. Buying property in Arcadia is more accessible than in markets such as San Francisco or Los Angeles. But, property here isn’t cheap. Make sure you have the financial means that are necessary to make smart investments. You’ll need a reserve, too, for things such as repairs, improvements, marketing, turnover, and vacancy
  • Financing a purchase is not always easy. Interest rates have risen, and that means mortgages are more expensive. You may need to be creative in the way you finance your purchase. 

Contact Property ManagementThese are not risks that should deter you from investing in Arcadia. They’re all manageable, especially if you’re working with an experienced Arcadia property management company. We can be that resource for you. When you’re ready to invest, contact us at ZenPro Property Management.