Rental properties are generally a lucrative investment, and these days buying property is a hot commodity. However, if you aren’t careful, your investment can quickly spiral downwards. Before you sign any agreement, it’s important to know how to properly evaluate a real estate investment.
The key to prosperous real estate investing is knowing if your property will turn a profit. In order to make sure your Eureka and Arcata investment is successful, you have to understand how to correctly find and evaluate a property.
To begin the process of finding a property it’s important to decide what kind of house you are looking for. For instance, would you rather buy a home that’s ready to live in and rent right away, or would you rather buy a home that’s less in cost, but needs some work.
If you are looking to spend less, go for an older home. Here in Humboldt County there is an array of older homes built turn of the century. They may have been well maintained or they may have a lot different maintenance issues. You want to consider the overall state of the property because any renovation or remodeling will come out of your pocket. So, decide what kind of property you want beforehand and be willing to work with what you go.
After you’ve made the choice between a turnkey property versus a distressed property, you want to begin to work with a realtor. With a realtor’s help, you will be able to find the property you want and a location that will maximize the property’s return value. For instance, Humboldt State University is a bustling school with a lot of students coming in and out. This area is a fantastic location to invest in and has a lot of great properties available.
Lastly, ask your realtor for a referral for a property management company in the Humboldt County area. You can either hire the property management company to look after your property, or use them as an advisor to make sure you’re getting a realistic number for the rent. Additionally, they will be able to help you understand the rental market in that area, so you don’t make a bad decision and buy a home that isn’t favorable for good tenant or student housing.
Taking your time when evaluating property in Eureka and Arcata is the best way to have a rewarding and successful real estate venture. Although there’s a lot of pitfalls and difficult decisions to make, if you have the correct guidance and ongoing support, your results can be lucrative.
Contact Real Property Management Humboldt if you have any questions.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.