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Planning on Investing in Stockton Single-Family Homes?

Central Valley Rental Property – 3 Signs That Your Cash Flow Isn’t Really Passive

Stockton, CA continues to be one of the best places for real estate investment in the United States because property values here are still low, mortgage interest rates are low and demand for rental properties are high.

If you’re thinking about investing in single-family homes in the Stockton area this article will provide you with useful tips for investing in a home in the Stockton area.

Things to Know Before Investing in Single Family Homes

Know your investing criteria first

 With any investment, be it stocks, bonds or real estate, you need to know what your objectives are. If you’re focused on safety and security, consider exploring low-risk investment homes that generate steady, reliable yield. An example of this may be a more expensive investment property in a good school district. You’re going to get a lower yield, but you may see better downside protection and less volatility. If you have a longer-term horizon or you’re seeking higher returns, you may want to take on a little more risk. Often, lower-priced homes will be riskier, but you may get higher yields and potentially higher long-term returns.

Don’t limit your investment property search to where you live

 Consider this: If you lived in Atlanta, you wouldn’t buy Coca-Cola stock simply because its headquarters are local. The same principle applies to real estate investing. If your primary residence, income property, and job are all located in the same area, you have a lot of concentrated risk and are more vulnerable to the swings of the local economy. At my company Roofstock, an online marketplace for buying and selling leased single-family rental homes, we encourage people to spread risk by investing in markets outside of where they live. (Hiring a local property manager is key here.)

Diversification is just one reason to expand your investment property search. Another is access: If you live in an expensive urban or coastal area with relatively high home prices — the San Francisco Bay Area, for instance — finding an income property that’s cash-flow positive is going to be challenging, to say the least. You won’t be able to find a great income property for $100,000 in Seattle, Denver, or Oakland, Calif., but you can if the focus on the Midwest, South, and Southeast.  

 Separate investing from operations

 One of the appeals of investing in single-family rental homes is you can hire strong local property management firms to handle day-to-day management tasks of rent collection, repairs and maintenance, and leasing. Over the past several years, property managers have adopted new technologies and business processes to manage

Get Property Management Here

Don’t manage your first rental property yourself. Contact RPM Central Valley today by calling us at (209) 572-2222 or click here to connect with us online.

 

Get professional property management in the Central Valley by calling us at (209) 572-2222 or connect with us online.