The real estate market is moving quickly right now, and with interest rates rising, this is the time to invest in an Irvine property if you’ve been thinking about doing it for the first time.
Investing in Irvine offers an opportunity to build wealth in the long term while your tenants help you pay down the mortgage and other costs associated with your investment. We’re enjoying a stable rental market with low vacancy rates and high rental values.
Even with the market favorable to owners, new investors sometimes struggle with buying the right property and renting it out effectively. This can be especially challenging when inventory is limited.
At HCM Property Management, we’re in the business of working with investors like you to manage single-family homes in and around the Irvine area. Our experience has given us some insight which new investors find valuable, and we’re sharing some beginner tips with you today.
Tip: Know the Irvine Rental Market
New investors need to quickly understand that the sales market and the rental market operate differently. When you’re buying, you’ll pay attention to purchase price and location and the terms of the deal. When you’re renting that property out, you’ll need to think about how you’re going to price your home, look for tenants, and establish relationships with vendors and contractors who can help you maintain it.
Tip: Choose the Right Irvine Investment Property
Many beginners think they make money when they sell a property. Actually, you make your money when you acquire a property, and that’s why you have to get it right.
To maximize what you earn in the short and long term, you need to buy the right home at the right time for the right price. This is the best way to ensure a consistent cash flow and increase your long-term ROI. Don’t go chasing the wrong property just because you’re eager to get started. Set some investment goals so you know what you’re looking for, and stick with them.
Tip: Hire an Irvine Property Manager Early
Smart investors understand the value of professional property management. New investors sometimes make the mistake of waiting until after they buy a property to begin working with a property management partner.
If you contact a property manager before you invest, you can benefit from our resources and expertise. We’ll help you understand:
- How much rent a particular property is likely to earn.
- What types of tenants are likely to want to rent your property.
- What kind of updates and improvements may be needed before you list your rental property.
- What types of maintenance issues you can expect from a particular property.
Property managers will help you lease, manage, and maintain your investment property effectively. You’ll benefit from our knowledge, networks, and technology.
Tip: Don’t Forget Your Tax Benefits
No one likes to think about taxes. Unless you’re a real estate investor.
Your rental property can help you reduce your tax liability and provide you with a number of ways to defer and reduce what you owe. Make sure you talk to your tax advisor or CPA, even before you buy an investment property. You’ll want to know how to structure your acquisitions and pay your taxes so you ensure you’re getting as much of a benefit as possible.
Remember that you’ll be able to depreciate your property, and any professional services you pay for (such as property management) are tax-deductible. You can also write off much of your maintenance work.
With these tips, we think even beginners have an excellent chance at making some money in the Irvine rental market. There’s a lot more we can tell you about how to have a great investment experience even as a beginning. Please contact us at HCM Property Management with any questions.