As you probably know, California real estate is at a premium. Prices are generally high, and it can seem like an intimidating market to enter as an investor.
But, smart investors know that California has some pockets of prime properties that will pay off when you measure your potential ROI against your initial investment. Today, we’re talking about three of the best places to invest when you want to own and rent out property in California.
Consider San Jose, Santa Cruz, and Sacramento when you’re looking for an investment property with sky-high potential.
Investing in San Jose Properties
In San Jose, Silicon Valley salaries can support the rising cost of real estate. It’s one of California’s largest cities, and the population has swelled to about a million people in recent years. The cost of living is high, and the median home value, according to Zillow, is over a million dollars.
That may seem daunting, but home values have increased by more than 17 percent in the last year, and this year the growth rate is expected to keep pace with that number. San Jose is in the top 10 percent of national markets when it comes to real estate appreciation. The home you buy today will be worth a lot more when you’re ready to sell in 10, 20, or 30 years. If you’re a long-term investor with plans to hold onto your property for as long as possible while high-quality, well-paid tenants continue to help with mortgage payments, San Jose is an excellent market for you.
Buying Santa Cruz Real Estate
One of the most easily recognized rules in real estate is location. Santa Cruz has that covered. It’s one of California’s most idyllic and enjoyable coastal towns, and it has a selection of both astonishing and practical properties. If you’re thinking about renting out a property you currently own or you want to buy something to rent out now and maybe move into when you’ve hit retirement age – this is the market for you.
The best properties for investors in Santa Cruz are three-bedroom, two-bathroom single-family homes that can be found on the lower end of the local price range. You’ll find a wealth of tenants looking for a comfortable, well-maintained Santa Cruz homes, and then you can use other peoples’ money to pay your expenses and earn impressive long-term returns.
Earning more with Sacramento Rentals
California’s capital city provides some outstanding opportunities for investors who are interested in California properties without the coastal or Silicon Valley prices. Sacramento is growing economically and in population numbers, and this thriving city is doing so while maintaining a low cost of living and reasonable housing prices. The tech industry is slowly spreading to Sacramento, leading to bigger budgets and better job opportunities for your tenant pool.
With all the growth, sales prices are rising, but home values are rising faster. It’s a hot market with a lot of opportunity, but the best properties are likely to be scooped up sooner rather than later. Check out new construction in both the single-family and multi-family markets. This is the perfect time to invest in Sacramento rental properties.
Choosing a Property Management Company for your Investment
Find a management company with a deep knowledge of the local market, a staff of experienced Santa Cruz property managers who understand the laws, best practices, and tenant pools in each area, and ideas and solutions to help your investments grow in value.
Buyers who are interested in finding investment property in San Jose, please contact Real Estate Connections, where we provide the best San Jose property management that you’ll find in the local area.
If you’re interested in Santa Cruz property management and investment homes, please contact us at Portola Property Management, where you’ll receive unparalleled service.
And, if you’d like to buy an investment property in Sacramento, we invite you to contact the talented team at Sunburst Properties.