Ready to jump into San Jose Real Estate Market for your first investment property?
Tip #1: Invest in Employment Hubs
I would like to share a few essential tips that I have learnt from personal experience as an investor in real estate and as a Realtor who helped real estate investors make the right decision when it comes to buying a home to rent in Silicon Valley.
Large cities such as San Jose, and San Francisco in the Bay area immediately come to mind to real estate investors. Cities are critical employment hubs across the world. Salaries are higher on average, rents are typically higher as well, lead time to rent is short sometimes regardless of the price providing the quality is right (e.g. spectacular city views, proximity to shopping areas, nightlife, etc). Home prices in cities are also subject to nationwide and local real estate trends but you are less likely to get stuck with your house or condo unlike in some more suburban neighborhoods. No need to think twice about how much in value has been gained by investors who purchased properties in large cities on the East and West Coast 10 years ago. Watch out for coops though where you will not be able to rent without board approval.
Tip #2: Consolidate Your Investment
If you are considering investing in multiple properties, invest in the same building if possible or very close to the location of your original investment. Not only your influence on the Home Owner Board will be greater, but you will save a lot of time and mileage. Also, as property owner in the same area, you will acquire a neighborhood expertise which will help you make arbitrage as required and be the first one to know about real estate deals in the vicinity.
Tip #3: Don't be a Passive Investor
Renting out means taking on responsibilities for the well being of your tenants. Do not hesitate to make home improvements which will make it easier to retain your tenants and/or rent out to the next one. Ensure that the overall quality of life and infrastructure in the building is preserved, not just to prevent damage, but also to ensure preservation of value. Well maintained buildings attracts high end tenants with means.
© Sophia Delacotte CDPE, SFR, CHS
San Jose Realtor
Cell: (408) 717-2575