I was invited to speak at the Santa Cruz Housing Expo on May 8th, which was sponsored by the Santa Cruz Association of Realtors. My topic was Investment Properties. Here is a brief outline of workshop.
Investment Opportunities:
What is your goal – rental income, appreciation and sell, pass on to heirs?
Location – this will determine rent, appreciation and what kind of tenants you will have
Type of Property – single family, multi-family, owner living on property
Cash Flow – what are your expectations and how much are you willing to put down to achieve cash flow?
Loan – do your home work. Right now single family is probably easier to buy and get a loan on versus a multi-family.
FMV – Fair Market Value – Rent – often realtors will tell potential buyers that they can X amount of rent and the reality is substantially less which goes straight to your bottomline and cash flow. Always check with local property management company to find out comparable rates for your type of property.
True Cost of Rentals – Isn’t just the mortgage payment, you need reserves for unexpected maintenance, allow for vacancy factor meaning no rent coming in to cover costs, possible court costs if you ever have a bad tenant, and most importantly your TIME. I am always amazed at how people give their time away.
Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.
Kathleen Richards
