While investing in real estate for sale in Malibu, CA can help you make long-term residual income, note that no investment offers a guaranteed return. Therefore, it is critical that you take steps to develop a strategy that includes specific criteria that should be met before a property is purchased. What criteria should be considered when making a real estate investment decision?
Choose Single-Family Homes Whenever Possible
If you can, you should purchase a single-family home located in an area close to schools, businesses, or other key amenities. Most tenants who live in single family homes are parents with children or professionals who plan to stay in the area for many years into the future. Therefore, you won’t have to advertise your rental every year or deal with tenants who aren’t willing or able to pay the rent.
Why Does Location Matter?
If you have ever searched for a place to live, you have probably focused your search in areas close to a major highway, places to eat, or an area that is close to work. This is because it may be more convenient to live in a desirable area that may be farther away from your job if you can take the highway instead of country back roads. The same concept applies to tenants who are looking for a home. A property that is located in a desirable area is always going to be in demand and reels in more potential tenants.
Opt for Properties That Are in Good Condition
You may think that buying a fixer-upper will help you save money on your next rental property. While you may save money on the purchase price, you may pay more in the long run on repairs, maintenance, and the replacement of other house items or component. Buying a house that is in good condition costs less in the long-term and is generally more attractive to renters who don’t want to deal with the lights going out or the porch railing falling off.
If you are in the market for a rental property, it may be a good idea to talk to a real estate professional who can show you real estate listings in Malibu, CA. Looking at Malibu real estate for sale with a professional may help you find a property that is both attractive and right for your investment portfolio.
How to Choose an Investment Property That Earns You the Most, RealEstate.aol, February 28, 2013
3 Real Estate Investment Tips for Choosing a Rental Property, RentPrep.com, November 25, 2013