Did you know that the median price of a home in 16 zip codes in Orange County has surpassed the million-dollar mark? In other words, prices have pretty much doubled in the last ten years!
Imagine how you would feel if you had doubled your money in just a decade? Basically, a steady 10 percent raise every single year. Not to mention the rental income and tax deductions you’d likely benefit from throughout those same 10 years. You are probably looking at these figures and thinking, “OK, I am ready to dive in.” We have some tips to keep in mind when you are looking into OC real estate investing.
Tips for Investing in Orange County
Put Your Finances in Order
Figure out how much you can spend and how much you can afford as a down payment. Once you have your bracket you are ready to start looking. No point in wasting time looking at things outside your range.
Do your research. Figure out which areas rent the best, which zip codes have a good school district and which don’t, and what areas are growing and which are declining. Real estate investing is all about being well informed and knowing the facts.
Shop Around for the Best Agent
You want someone who is knowledgeable of the market and can offer California real estate investment tips. You’ll also want to work with an agent who understands investing and knows the difference between a great investment and terrible liability.
Find Your Sweet Spot
Know whether your goal is to buy and rent it out or buy, fix and resell it; you should find what suits you and your investment needs. If your aim is to find multi-family property and rent it, then don’t waste time looking at other types of properties. Focus on multi-family deals and become well educated on how they work and how to find a great deal. Real estate investing is not only about finding the deal, but also knowing what to do with it. Figure out what type of investment you want, create an investment plan and stick to the plan.
Don’t Bite Off More Than You Can Chew
It is easy to be distracted by that great place being sold under market price, but if you cannot afford it, all you are doing is getting yourself in trouble. Real estate deals are not always as good as they seem, make sure to do a thorough physical and financial evaluation of the property so that you are not suck with something you can’t afford fix or operate.
Location, Location, Location
You have probably heard that before. Even if it sounds like a cliché, it is important. You can find all sorts of information online, crime rates, school districts, etc. Make sure you know what you are getting into and in what direction the neighborhood is going. Investing in established and up-and-coming areas can make for great investments but be sure to research the area before you invest.
Make Realistic Offers
Don’t expect the homeowners to just give their property away, but do not overshoot either. Research comparable homes that sold recently and try sticking around or a little under those prices, but not too much. Make sure you’re investing based on the rental value and potential of the home. Be careful, the home values in some areas will far exceed the rental values of the homes making them a bad investment if you are expecting to generate positive cash-flow.
Get the Best Home Inspector
Nothing will rain on your parade faster than finding out the house has termites or that the roof needs repair and the plumbing is in shambles after you bought the house. Make sure you get a good home inspector to save you from future nightmares.
Looking to Make Your Best Investment? Give AllView a Call!
Best advice we can give you is to give us a call! AllView Real Estate Management is Orange County’s premier property management and investment firm. We offer not only exceptional property management, but also real estate investment consulting and management. Call us at (949) 400-4275 or send us an email at email@example.com for real estate investment expertise.