Should You Invest in Rental Properties Now Before More Stock Market Losses?

If you’ve been following the latest stock market news on a daily basis it’s not hard to see that the stock market is in turmoil right now. Over the last two weeks, it’s not common to find out that the DOW is down by 600 points one day, then up by 400 points the next.

Sadly, the stock market correction that investors and analysts have been speculating about for the last 3 years has finally arrived and, the full-blown correction has not officially hit yet. Many people predict that the stock market could see a loss of close to 2500 points sometime within the next 30 days. That is is why it makes it more important than ever before for investors who want to avoid losing money in the stock market to consider investing in rental properties now.

Why Invest in Rental Properties?

The most important reason to consider investing in rental properties now is financial security.

When the stock market is going down, you can always count on your rental properties to continue producing you regular income on a monthly basis that you can depend upon.

Over the last 20 years, rental properties have been the most consistent investment around and everyone from Jim Cramer, to investors in the San Diego area, have been putting their money into rental properties to avoid the losses that they may have sustained following the .COM bubble burst of the late 90s, or the Great Recession.

What Types of Rentals Should You Invest In?

With more cities across the United States taking a stand against Airbnb and short-term rental properties as a whole, it makes more sense for investors in cities like San Diego, Phoenix, and Las Vegas to consider investing in long-term residential rental properties.

The obvious benefit of investing in a long-term rental property is that it will produce consistent cash flow for you on a regular basis and you won’t have to deal with the hassle which comes from owning and managing a short-term rental property like an Airbnb.

Depending upon your preference, you may be more inclined to invest in a single-family home versus a multi-family rental property, and that’s okay. There are more renters in Southern California, Phoenix, and Nevada than ever before and the good news is that there is also a wide mix of renters who prefer renting single-family homes, versus an apartment or a unit in a multi-family rental property.

Learn More Here

To learn more about real estate investments in San Diego, Phoenix and Las Vegas or to speak with us about our Property Management Services, contact us today at (866) 545-5303 or click here to connect with us online.

Planning on Getting Started as A Real Estate Investor but Don’t Know Where to Start? Click Here

So, you’ve been thinking about getting started in Real Estate investing but don’t know where to start.

The good news is that you’ve come to the right place.

In this article, we will provide you with several tips you can use to successfully get started as a Real Estate investor regardless if you plan on investing in San Diego, Las Vegas or Phoenix Real Estate.

Tips #1 – Start Small in The Beginning

Sadly, many investors get started in real estate investing by purchasing more than one rental property at once and they are not ready with the responsibilities which come with managing multiple rentals.

This is why you should start small at first because starting small and building your portfolio or rental properties over time will give you the ability to make small mistakes and learn from them rather than having to deal with multiple mistakes which can come with managing multiple rental properties.

Tip #2 – Choose Properties That Are in In Demand Locations

You’ve heard the old phrase “location, location, location” when it comes to buying Real Estate for your primary residence right? The same can be said about investing in rental properties.

Location is important because tenants know what they want and they will be more inclined to rent a property that meets criteria that they are looking for.

Some of the most common criteria that tenants are looking for in a rental property include:

  • Bedrooms/bathrooms – Most renters are looking for rental properties that have a minimum of 2 bedrooms and 2 bathrooms.
  • Square feet – Every renter wants to rent a property that offers them plenty of square feet so it’s important to find a viable rental property that offers renters plenty of space for them to enjoy.
  • Location – Although some tenants want to live close to downtown, others want to be near the beach of enjoy the quiet solitude of the suburbs. Regardless of where your rental is located, don’t forget to highlight every aspect of its location.
  • Amenities – It doesn’t matter if the property is a single-family home, condo or town home, it has to have great amenities that tenants will want.

Tip #3 – Hire A Property Management Company

Last of all, but most important, the most important thing that you want to do when getting started as a Real Estate investor is to hire a property management company.

At GoldenWest Management we make owning rental properties easy and will save you the time, money and hassle of having to manage your rental property yourself.

To learn more about the services we can offer you contact us today at (866) 545-5303 or click here to connect with us online.

Tips for Selecting Your First Rental Property

By GoldenWest Management

Are you planning on buying your first rental property?

Now is a great time to buy a rental property thanks to low mortgage interest rates and demand for rental properties especially in cities like San Diego, Phoenix, and Las Vegas.

Since more people are investing in rental properties for the first time this article, we will share with you several tips you can use to successfully purchase your first rental property.

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Make Sure Your Ready to Invest in Rental Properties

Although your family members, co-workers, and accountant may be advising you to invest in rental properties you have to make sure that you’re really ready to invest in rentals.

Owning Real Estate means that you will be responsible for paying landlord insurance and property taxes and unless you hire a property management company you will be responsible for things like tenant selection/placement, rent collection and more.

 

Yes, owning rental property is a smart investment thanks to benefits like current income, appreciation, equity and tax right offs but if you’re not ready for the responsibilities which come with being an owner you should be ready to hire a property management company after purchasing a rental or hold off on buying a rental property for a few years.

If you’re ready to invest in rental properties but aren’t sure if you’re sure investing in a property out of state is a smart move, you should stick with investing in a rental in your area because you know what’s happening economically, who’s hiring and the advantages of living there compared to purchasing property that’s out of state.

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Determine the Specifics

Before choosing a rental property it’s important to first determine the specifics of what you’re searching for in a rental property including the location that you want to own a rental, because in most cities rental properties that are located close to downtown or close to colleges will rent for more money than rentals in suburban areas.

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Investigate the Area Where the Rental Is Located

You should also verify if the area where you plan on buying a rental property has many rentals or not because if a neighborhood is primarily owner occupied this could mean that it might be more difficult to have a rental property there versus owning a home in an area that’s primarily renter occupied.

If you’re not familiar with the neighborhood or area, take the time to drive there to meet with homeowners, landlords (if possible) and people who live in the area to determine what it will be like for renters if you were to purchase a rental property there.

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Get Your Budget Ready

Since prices for Real Estate in many cities have reached all-time highs you should set your budget before you start searching for rentals because in this real estate climate it’s very easy for any buyer or first-time investor to overspend.

It’s also important to save at least 20% or more for a down payment because lender requirements are much more stringent with rental properties and the investment rate on a rental property will be higher so you will have to think about that as well.

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Avoid Fixer Upper Properties

Yes, most people are talking about investing in fixer-upper properties these days the reality is that fixer upper properties can be costly (unless you know what you’re doing) so it’s best to avoid them and purchase rental properties that are in as close to the move-in condition as possible.

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Create A List of Properties

Once you know the specifics of the property you’re searching for, and you’ve set your budget, you should next create a list of properties that match your criteria because this will help you to simplify your search especially when you use online tools to find suitable rental properties.

Some criteria that you should consider applying to your search for rental properties include:

Bedrooms – The single-family home, condo, or duplex should have at least 3 bedrooms.

Bathrooms – 2 bathrooms are recommended.

Square Feet – Home should have no less than 1200 square feet.

Age – The property shouldn’t be older than 25 years old since renovation or demo may be required to remove potentially hazardous materials like Radon, Asbestos or Lead Paint that may be on the property.

Rent – Search online or speak with a property manager to determine the market rent for the area where you are buying a rental property.

Cap Rate – We recommend looking for rentals that offer a 4% cap rate or better (cap rates and gross multipliers are important).

HOA – Check the HOA rules and regulations for the community where you plan on buying a rental property because some communities are very strict and will even go as far as placing you on a waiting list until you can rent your home.

Garage – In today’s rental market it doesn’t matter if a property has a garage or not.

Renovation – Know how much it’s going to cost to make renovations in the property, especially in the kitchen or bathroom, because you may be able to rent a property for $80 to $90 more per month if it has recently remodeled kitchen or bathroom.

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Be Ready for Screening Tenants

Once you’ve purchased your first rental property the real work has only just begun since you have to be ready to screen tenants and this should include reviewing their credit score, work history, criminal history and financial history.

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Save Time and Money with Property Management

Buying a rental property in Las Vegas, Phoenix or San Diego?

Each city has major differences in terms of average rents and requirements for owning rental property.

Once you find the right rental property don’t attempt to manage it yourself, save the time, money and hassle of managing rental properties by hiring our experienced and professional property management team.

Contact GoldenWest Management today by calling us at (866) 545-5303 or click here to connect with us online.

Multi-Family versus Single Family San Diego Rental Properties

Phoenix Rental Homes

So you’re thinking about investing in San Diego Rental Properties thanks to the explosive growth of the Real Estate market and demand for rental properties.

Before moving forward on adding rental properties in San Diego or Las Vegas to your investment portfolio you must decide if buying single family or multi-family rentals are the best options for your Real Estate investment.

In this post we will break down the benefits of both options so you can be a more knowledgeable investor when you are ready to make a decision.

Why Buy A Single Family Home?

Over the last three years almost everyone from Warren Buffett to the traditional Real Estate investor has been buying single family homes.

If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.

Source – cnbc.com

Some reasons to invest in single family homes include:

  1. You have more leverage: When you buy a single family home in San Diego with a 20% down payment you will be able to immediately see a great return on your investment thanks to the cash flow which will come from that property.
  2. Big Growth – Home prices are still affordable right now compared to historical values and you will be able to buy a home for an affordable price then see a great return on your investment over time thanks to equity and appreciation.
  3. Huge Financial Benefits – Buying a single family home also means you will be able to benefit from the tax deductions which come from owning the property.

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Should You Buy A Multi-Family Property?

There are many benefits which come with buying multi-unit properties including the following:

  • The price per unit is lower than most single family homes.
  • Multi-unit properties offer greater income diversification than single family homes.
  • Processing the paperwork with a multi-unit property is easier than it would be if you were to invest in multiple single family homes.
  • Owning a multi-family property also means you will have lower overhead costs compared to owning multiple single family properties.

About Goldenwest Management

At GoldenWest Management, Inc. we pride ourselves in affordable Property Management in San Diego, Phoenix and Las Vegas. We offer a full range of property management and investment services.

Get property management for your San Diego Rental Properties by calling us today at (858) 792-3442 or contact us online.

Phoenix Arizona Rental Properties – 4 Tips for Successful Real Estate Investing

Phoenix Arizona Rental Properties

By Goldenwest Management

Are you thinking about getting started with investing in Phoenix Arizona Rental Properties?

Now is the right time to start investing in rental properties thanks to high demand for rentals and low mortgage interest rates nationwide.

Everyone from Robert Kiyosaki to Warren Buffet are advocates for Real Estate investing thanks to the steady cash flow you receive from your rental properties each month and the wide variety of other benefits which come from owning rentals like tax deductions and equity.

To get you started with Real Estate investing right here are our 4 tips for successful Real Estate Investing.

Tip #1 – Never Stop Educating Yourself

This tip is vital to follow because once you stop learning about Real Estate investing you won’t continue to see the same success that you’re enjoying when you’re learning about Real Estate investing.

Establish a set daily time for studying and following what other Real Estate investors are doing so you can stay ahead of other investors and even find great deals no matter what shape the economy is in.

Tip #2 – Set Clear Goals for Yourself

Once you get started with investing in Phoenix Arizona Rental Properties don’t get satisfied with just one property, set clear goals for yourself on how many properties you want to buy so your net worth will grow every year.

For example: one of your goals could be to save $20,000 and use that profit from your rental property to use as a down payment on one new Phoenix Arizona Rental each year.

Tip #3 – Don’t Speculate!

Although the market may be up, or down, NEVER speculate on where you think it’s going to go or speculate on what your short term gain will be if you purchase a new rental property in Arizona now.

Always use wisdom backed up by hard data when you’re investing because these are the two things which will ultimately contribute to your long term success as an investor.

Tip #4 – Always Invest For Cash Flow

When investing in a Phoenix Arizona Rental property your primary question should be “what is the cash flow I will get from this property” because cash flow is king and also the key to your success if you’re trying to build cash flow for your retirement.

Contact Goldenwest Management

To get started with investing in Phoenix Arizona Rental Properties contact Goldenwest Management today by calling us at (602) 765-4750 or click here to connect with us online.

Skip the dorm; Buy your kid a condo!!!

Absolutely great article from the Bill Bischoff at SmartMoney. With Real estate prices at an all time low, easy financing programs for Parent-Student combos and tax breaks, its a no brainer. After the student graduates, you can either sell or turn over the unit to a property manager to keep it cashflowing for you (or your son or daughters first investment property)!

http://www.smartmoney.com/taxes/income/buying-a-condo-for-a-college-kid-is-a-tax-smart-move-23572/?zone=intromessage