Tips for Buying An Investment Property

Buying a rental property is not just for "the rich" any longer.  Many these days are right to think of buying a rental property as a way of padding their retirement income!  And with current Mortgage Interest Rates still holding, I see buying income producing properties as being a smart investment.

But what should one consider before jumping into such a commitment?  Below are a few thoughts:

Location, location, location.
Does the area where you are looking to purchase in have a high number of steady jobs?  Or is it near a University where you could get a steady stream of student renters?  Does the amount of rent you need coming in fit with the area, or would you need to charge too high of a rent for the area in order to cover your expenses?  Answering these questions BEFORE you purchase can save you a lot of months of no income on your new rental property while trying to figure out where to get a renter or how much rent you can charge to fit the area.

Who will take your maintenance calls in the middle of the night?
If you don't want tenants to be calling you personally with every question, concern, or maintenance need, you may want to consider hiring a Property Management company.  Remember to add the cost of such into your expenses, however, when thinking about how much rent you will need to charge to cover your expenses.

Do you know how to legally screen tenants and how much deposit money you can legally charge?
Again, the hiring of a professional Property Management company could help you in your beginning years as you learn the legalities of being a Landlord or if you don't want the hassle of screening, or of sometimes evicting, tenants.

Being a Landlord can be financially rewarding, however, knowing the Laws and Rights of both Landlord and Tenant before you purchase is not just wise, but will keep you out of a lot of trouble.  And thinking about all the expenses that come with owning an income producing property before you purchase, will help you avoid surprises in your budgets.

For a current list of possible income producing properties in Santa Clarita contact me directly for your own tailored list which can be automated and updated daily and delivered right to your own email box:
LeeAnn Bell 661-309-2364

LeeAnnRealtor@yahoo.com
CalBRE License #01260650

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(c) 2011 LeeAnn Bell, REALTOR®   --  updated 2016