The Santa Rosa area is one of the most popular places to buy investment properties in the state of California. Many people are increasingly buying vacation homes and rentals in the area due to the comparatively low taxes, pleasant weather, as well as the rapidly flourishing business sector in the city. As the real estate market in Santa Rosa is one of the most expensive ones in America, buying an investment property here requires a lot of planning.
A perfect rental is one that meets all your requirements and gives you significant returns on investment. As a potential Santa Rosa investor, here is how you can pick the perfect Santa Rosa investment property.
Do your research
Before buying an investment property, it is necessary to put in a lot of research into the particulars of the place. The most important thing that matters is the location and the neighborhood. A scenic location which has good school districts and is within reach of restaurants and shopping malls is desirable. Such places will also attract quality tenants.
Southwest redevelopment, South Park, and Reibli-Wallace are some of the most popular neighborhoods for investment properties in Santa Rosa.
Additionally, you should also get to know the average rent in the area and the projected market growth. Since housing market rates have increased steadily over the last few years, there is a lot of scope for getting substantial profits in rent. Therefore, it is necessary to stay updated with the recent market changes and be on top of current data.
Decide the type of property you want to invest in
The rate of rent can fluctuate depending on the type of the property i.e., the number of bedrooms, in an apartment, family home, or a duplex. In Santa Rosa, single-family homes with 2-3 bedrooms and vacation homes are the most popular investment options. The choice of investment, whether a vacation rental or housing unit, differs with each real estate investor.
Rent before you invest
If you aim to look after your investment rental from afar, or if you are new to the Santa Rosa area, you have to first familiarize yourself with the real estate market and the surroundings. A popular option that many investors adopt is to rent a place in the area and live here for a few weeks. This helps you determine the viability of your investment and will help you make the right choice while picking a house.
Check affordability and pick a house within your budget
Deciding on a budget beforehand helps you save costs when you are looking for potential investment properties. While purchasing a vacation home might seem appealing, there are several additional costs involved, like rental property maintenance, furnishing, utilities, tax, and mortgage payments. These might cause your budget to overshoot and eventually result in a financial loss. Hence, checking the affordability of a rental before you decide to buy it is extremely important.
Hire a property manager
As a first-time property investor, it is difficult to accurately gauge where you want to invest your money. Since property investment is a major financial decision, you can’t afford to make mistakes. This is why hiring a qualified and experienced property manager can be the right call.
Santa Rosa can be an excellent place for property investment only if you find the right property that fits your requirements.
A Santa Rosa property management company like Redwood Residential Property Management will specialize in investment properties in the area; contact us so we can guide you through the process and help you pick the right property of your choice. Additionally, we can also tell you about your legal obligations as a potential investment rental owner, new rental laws, and procedures.