Beginner’s Guide to Buying Your First Rental Investment Property | Chula Vista, CA
If you’re buying your first rental property, there are some primary things to consider. I often talk to people who are excited about a property they just bought. They want to get it rented out as quickly as possible for top dollar, and the real estate agent that sold them the home said they should be able to get a certain amount for it. Then, they find out the rents won’t be as high as they think.
Buying First Investment Property: Get Help
The first rule of buying an investment property is to talk to a property manager about rental rates. We have homes for rent in the area, and we can show you comparables so you know what you’re getting into. Real estate agents will sell you all these hopes and dreams, and then we have to give you a reality check. It’s not fun for you or for us.
Buying First Rental Property: Be Compliant
If you’re going to buy something other than a single family house and your investment has multiple units, or a granny flat, make sure it is in fact permitted to have additional units. Search them on the tax records and look for separate parcel numbers and different legal addresses. It’s not uncommon that people will buy a house, convert the garage, and call it a granny flat. Then, they sell the property as two units. People get excited thinking there’s an extra unit, because it means extra cash. But, if it’s an illegal unit, you’re in a risky situation. We heavily discourage you from getting into illegal units. It doesn’t pay, and it can cost you dearly in the end.
Whatever you buy, make sure it’s permitted, legitimate, and legal. If you’re in doubt, contact us and we can search it for you. We can compare market rents, and at least you’ll have an accurate accounting of what’s happening and what you can expect from your ROI. Don’t get sold a bill of goods from someone who just wants to make a sale.