Especially for first-time investors or novice investors, it’s always best to start out small by purchasing a single-investment property. This will allow you to learn the ropes of real estate investments, and to gain valuable experience in coordinating transactions which sometimes can become complicated. It might be much more appealing to go for a big property with the potential for huge profits, but you’re generally much better off to make a small investment at the outset, so you can get a feel for the whole world of real estate investing.
We can help guide you through the process, so that you will feel comfortable enough to move on to bigger and better things. You should also know that mortgage insurance is not generally available for investment properties which are non-owner-occupied. In such cases, a 20% down payment is generally required in order to obtain traditional financing, and by increasing your down payment, you can usually obtain a better interest rate.
It’s also true that loan costs generally run somewhat higher for investment properties, so you should be prepared for this eventuality. When you do find the right investment property and conclude a successful transaction, you should be ready to engage the services of a qualified property management firm, for instance Sunset Property Management.
There are all kinds of challenges associated with being a landlord, and if you’re not prepared for them, they can be overwhelming. For instance, there are always repairs necessary, and simply dealing with tenants can sometimes be problematic. It will also be necessary to conduct proper accounting procedures for the management of your property, and rents will have to be collected from tenants.
Any requests for routine maintenance will have to be handled, to ensure that tenants’ requests are satisfied and to avoid causing dissatisfaction. When you choose Sunset Realty as both your broker and property management firm, we can offer you a discount on both services, so that it’s greatly to your advantage financially. We’ve got you covered from start to finish on any real estate investments you want to make in the San Diego area, so just contact us when you’re ready to begin.