If you are ready to start making your money work for you, investing in houses for Sale in SF can be a great option. There are many types of houses for Sale in SF properties on the market that you can invest in. The lower the risk that the property carries the better the chance will be of you getting a nice return on your investment.
Consider looking for the following situations when considering houses for Sale in SF investment properties.
It’s Not a Fixer Upper
Fixing and flipping properties is a popular idea in society, but executing on the concept is much harder than the television shows portray. Many investors have good intentions of fixing and updating old and run down houses for Sale in SF quickly get in over their heads. Forget about finding a fixer upper and look for a property that is already in good shape. The less money you have to put into the house the quicker you can start getting those rent checks showing up in your mailbox.
Consider Cash Flow Over Location
Everyone has heard real estate is all about location, location, location, but when it comes to investing the houses in great locations (like the waterfront or that great downtown loft) often have negative cash flows. When you are looking for investment properties, search in moderately priced areas. The deal might not seem as exciting, but when focus on getting 4 to 6 percent cash on cash return your first year you will be much happier than losing money on the beach house.
HOAs that are Financially Sound
Many houses for Sale in SF with homeowners associations (HOA) provide great amenities and benefits to homeowners. These amenities do come at a cost and a risk, however. If the HOA runs into financial or legal trouble you will end up partially responsible for the expense. If you are interested in investing in a property within an HOA community do not rush into the agreement. Do your research to make sure you are comfortable with the stability of the HOA.
Properties that Come with Tenants
If you are looking to invest in a rental property, the easiest way to do so is by purchasing houses for Sale in SF property that have good tenants already in place. If possible, look at the current lease and any credit reports, applications and payment history for the tenant(s) prior to making an offer. When purchasing a property that is being lived in, you will receive the security deposit and pro-rated rent from the seller and take over ownership of the lease.
Avoid Areas with High Vacancies
Purchasing a property in an area that has a lot of vacant properties can be a good indication that people do not want to live there. This will make it difficult for you to sell or rent when you are ready. Areas with high vacancy rates tend to have higher crime rates as well. No matter what kind of steal of a deal you get on a property, if it is in a place that no one is moving to it will not make you money.
Investment Properties You Want to Hang On To
The best way to make money on houses for Sale in SF investment properties is by holding onto the property long term. Look to invest in places that you will want to own and take care of for years. With this being said you will want to research neighborhoods and the trends to make sure the area isn’t declining in livability.
Finding houses for Sale in SF investment properties that fit these 6 qualifications is a great way to find an investment you will not only make money on, but that you will be happy to own. Real estate investments can be risky so you want to take the time to find low risk properties. Rushing into a property that you feel uneasy about is sure to be a decision that you will regret. Avoid buyer’s remorse and look for these types of investment properties.