Many investors begin working with a San Jose property management company after they’ve purchased a property and they’re ready to rent it out.
That’s a great strategy.
However, partnering with a professional property manager before you buy is even better. The right property manager can help you make good investment decisions and identify new opportunities. If you’re trying to grow your real estate investment portfolio, there are a lot of ways that property management can help.
Identifying San Jose Investment Opportunities
Your property manager can work with you on setting and pursuing investment goals. This will allow you to target specific homes that may add value to your portfolio. There are some great opportunities in and around the San Jose market, but if you don’t know exactly what you’re looking for and how it fits into your investment strategy, you could waste a lot of time and money chasing down the wrong deals. To be a successful rental property investor, you need to know what you’re looking for and you need to be able to identify it quickly. Property managers who understand the market can help.
We can help you prioritize what you’ll buy and where. For example, investing in a fixer-upper might sound like a good idea if that’s what you’re looking to do as an investor. But, you should stay away from homes that need a lot of work unless it’s the cornerstone of your investment plan. While the prices may be low and appealing, the amount you’ll have to spend to get that property into rent-ready condition may be more than you expect. Not only will you have to invest in repairs and rehab, you’ll also wait longer to begin earning rental income.
San Jose Property Management Can Help with Budgeting
Focusing on your numbers and your data is an important part of being a real estate investor. The right investment property will make sense for you financially.
Figuring out what your income and expenses will be can get tricky if you don’t have access to good, local data. A property manager will help you with rental rates, estimating repairs and upgrades that may be necessary, and planning for vacancy and ongoing maintenance expenses.
You’ll need to make sure those numbers fit into what you need and expect from this investment. Your comfortable cash on cash return and cap rate will depend on your investment goals and what you need to make this purchase work. Your property management team can run the numbers across several different scenarios. For example, what will happen if you have a vacant property for six months? How will your cash flow be impacted by the need for a new roof or another drought?
These are things you need to factor in when you’re determining what you’ll earn and spend on a property.
San Jose Property Management Help is Invaluable
A good property manager can be an important part of your investment team. Don’t wait until you’re ready to rent the property out to consult a property manager; find out what you need to know before you buy.
We’d be happy to help with any investment questions or with your San Jose property management and investment needs. Please don’t hesitate to contact us at Real Estate Connections.