Should I Purchase a Rental Property in Hillcrest, CA?
Before considering a rental property purchase in Hillcrest, CA, you should determine whether such a transaction aligns with your personal goals and objectives in real estate. Are you more interested in establishing steady cash flow with a property, or are you more interested in having the property appreciate in value, so it can eventually be sold at a profit?
You should also give some serious thought to whether you will manage the property yourself, or whether you’ll hire a property manager to handle the day-to-day operation of the facility. That can have a major impact on your free time, and if you lack the skills to effectively manage a property, you’ll probably be much better off to just hire a professional.
Research city growth statistics
It’s important that you do your calculations out into the future, so you can determine whether or not you can expect positive cash flow from your investment. In order to do this you’ll need to know a few things like what the job market is like in the Hillcrest area, and whether it’s rising or declining. Find out about any trends occurring in the city which might help or hinder your investment. Check on the occupancy rate in Hillcrest to determine if it’s traditionally high, or whether it depends on seasonal tenants. It would also be a good idea to learn about the industries in the area and how they affect the local economy.
Current demographics of the Hillcrest area indicate that single-family homes dominate the real estate market in that area. You will need to identify whether or not single-family homes are part of your long-term strategy. If they are, then investing in Hillcrest properties may be in your best interest. However, if you prefer investing in units which provide multiple incomes from the same dwelling, this may not be the ideal area to invest in.
How long to retain the property
Prior to investing in Hillcrest, you should have some time frame in mind for how long you plan to keep the property. If you’re hoping to reach a certain appreciation point, that should be identified as a clear objective of your purchase. Any property type that you select in the Hillcrest region should match what your real estate objectives are, and should help you achieve an appreciation figure during the time frame you have in mind.
Hillcrest rental rates
If you’re strongly considering a purchase of a rental unit in the Hillcrest area, you should immediately begin researching the average rents and the average sale prices of units similar to the one you’re considering. The rent that you charge will depend on the type of property it is, as well as the layout of the unit, with regard to the number of bedrooms and bathrooms. You should also research the growth rate of rents around the region, so you’ll have an idea about any increases you might want to plan.
Hiring a property manager
Keep in mind that nearly one-third of all landlords are embroiled in some type of lawsuit, simply because they don’t understand tenant laws and real estate laws. You can avoid most of that unpleasant action by hiring a property manager who is well-versed in such laws. It’s extremely important that you follow all pertinent rules and regulations, and that you observe them during the tenant selection process.
A property manager can handle all that for you, as well as managing all the daily and monthly tasks like collecting rents and dealing with any kind of maintenance issues. Being aware of all these issues can help you make a better decision on whether or not to invest in a real estate property in Hillcrest, CA.