Are you planning on buying rental properties in Stockton CA? If so, there’s never been a better time than right now to buy rentals in the area thanks to historically low mortgage interest rates and the demand for rental properties.
“If you have the option, owning assets that produce income is a better financial strategy than owning assets that generate expenses.” – Source Forbes Magazine
In this article we will break down a step by step process you should follow for buying rental properties in the Stockton CA area.
Step 1 – Define What Rental Property You’re Searching For
Are you interested in buying rental properties which you will use for long term rentals or short term rentals?
Some of the other important questions you should ask are:
- How much money can you put down?
- What is the monthly payment you can afford until you rent your property?
- What are properties renting for in your Stockton target area?
- How much income can you expect from your rental each month after expenses?
Get Pre-Approved For a Mortgage Loan
After you know the rental property you are searching for it’s important for you to get pre-approved for a mortgage loan so you can buy a Stockton Rental Property.
Before accepting just any mortgage loan you should get quotes from at least 5 lenders or mortgage brokers to insure that you are able to get the lowest mortgage interest rate possible since mortgage interest rates are now hovering near 3 percent or lower.
Start Shopping For a Rental Home
Once you’ve been pre-approved for a rental you should start shopping for a rental home in Stockton.
Tip – During the process of shopping for a rental you shouldn’t let “shiny objects” like a renovated kitchen or massive bathroom distract you from buying a great home which you should be able to rent right away.
Make an Offer on a Rental Home
Now that you’ve found a rental property the next step is to make an offer on the rental you want to purchase.
Before making an offer it’s best to hire a broker / Real Estate Agent for this purpose just so you can submit an intelligent offer instead of paying more for a home than what it’s worth.
Get a Home Inspection
One of the final steps to buying a Stockton Rental Property is to get a home inspection before agreeing to submit an offer on the home.
You will be able to find a home inspector online or your broker / agent will be able to recommend a home inspector for this purpose.
Hire a Property Manager
Last of all, but most important, after you’ve purchased a Stockton Rental Property you should hire a property management company to manage the rental property for you.
Hiring a Stockton Property Management company will save you the time, money and hassle of managing a rental yourself and ultimately give you more time to focus on growing your rental property portfolio.
To learn more about what you should look for in a Stockton Rental Property, or to get property management service for your rentals, contact RPM Central Valley today by CLICKING HERE or calling us at 209-572-2222.