The current rental vacancy rate is only 2.8% in San Jose. That's excellent news for potential landlords. That means that the vast majority of rentals are full.
If you've been considering buying an investment property, now might be the perfect time. But how do you pick the right properties that can actually help you turn a profit?
We're here to help. Read on to learn a few quick tips for finding the right real estate in San Jose to invest in.
Know Your Budget
When you're looking into investing in property, you need to establish (and stick to) a firm budget. Many people think that owning investment properties is quick and easy money, but that isn't the case. You can't go into investing in San Jose real estate with the assumption that you will get an automatic return on your investment.
In other words, don't go over budget.
The cost of the property itself is one thing, but you also have to consider any relevant fees, the cost of repairs (more on that later), the cost of upkeep, and the cost of property management services if you choose to use them.
You also have to consider how much you'll be able to charge for rent. Don't commit to an investment property without considering these factors.
Research the Area
Always research individual neighborhoods before you buy your new investment property, especially if you don't live in the area already.
Not all areas are equal. They'll all attract different types of renters and they'll all have different reasonable rent caps. Check on things like nearby schools, neighborhood amenities, and crime maps to get an idea of what the neighborhoods are like.
This will also help you know your target renter. If the property you buy is near a lot of schools and parks, you'll attract more younger families. If it's near nightlife, you may attract childless adults and students.
This is also a great opportunity to see what other nearby properties are charging for rent so you can make your property comparable.
Consider Renovations and Repairs
So many new property investors buy "fixer-uppers" because they're more affordable. If you're not someone who genuinely enjoys making repairs and completing renovations, this isn't the right move for you.
Fixer-uppers are expensive in the long run if you want to make them appealing to potential renters. They may also cost more to maintain. It also takes far longer for you to start getting a return on your investment because you can't rent the property out until it's in good condition.
Don't make life harder for yourself. Pick a property that's already move-in ready.
Find the Right San Jose Investment Property for You
Don't settle for a sub-par investment property. You want to find a property that will help you make a steady income for years to come. These tips will help you do that.
If you're a new landlord, you should consider investing in professional property management services. We can help with that! Schedule a consult with us today.