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Be a
San Diego Real Estate Investor - 10 Important Secrets -
When it comes to investing, everybody has certain goals and
aspirations. However, we have found that there are certain guidelines
every aspiring real estate investor needs to know:
1. Compare Property Values and Rents Financial statistics
only go so far; the best measure of a property's market value
is often the sale prices of nearby properties. The same holds
true for area rents. A low price can often be justified by a
reasonable rent; renters who can afford a high rent can afford
to buy instead, so reasonably priced rent is a need.
2. Be careful - Tax laws may change Don't base your tax investment
on current tax laws. The tax code is constantly changing, and
a good investment is a good investment regardless of the tax
code. The right property with the right financing is what you
should look for as an investor.
3. Specialize in something you Know Start in a market segment
you know. Whether you focus on fixer-uppers, foreclosures, starter
homes, low-down payment properties, condominiums, or small apartment
buildings, you'll benefit from experience by specializing in
one aspect of investment real estate properties.
4. Know the Costs going in! Know the financial statements
inside out. What are operating expenses? What are loan payments?
Vacancy costs? Taxes? What does the cash flow statement look
like? These are key issues that must be addressed before making
a solid investment.
5. Know where your tenants are coming from If the last rent
increase was recent, your tenants may be considering a move.
If tenants have a short-term lease, they may be living there
simply to attract unsuspecting buyers. It is also important
to collect the tenants' security deposits at closing.
6. Assess the tax situation Taxes are an integral part of
successful real estate investing, and they often make the difference
between a positive cash flow and a negative one. Know the tax
situation, and see how it can be manipulated to your advantage.
It may be a good idea to consult a tax advisor.
7. Investigate insurance coverage If seller's coverage is
based on lower-than-current replacement value, your insurance
cost may increase when you pay a higher purchase price.
8. Confirm Utility Costs Ask the local utilities to verify
recent utility expenses, especially if any of these costs are
included in your tenant's rent.
9. Consult Your Accountant Taxation is a key element of successful
real estate investing, so be sure to find an accountant who
is well-versed with the constantly evolving tax code.
10. Inspect! Make sure that you always perform a thorough
inspection of the property before buying it. Never, ever buy
any property without at least examining the site. In some cases,
hiring professional inspectors to examine the structural mechanical
system may be a sound investment.
Visit our San Diego real estate
site frequently for more updated information!
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San Diego
Homes with our easy to use
San Diego MLS.
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