Opportunities for rental income in Los Angeles can be tough to find but they do exist.
As the California Association of Realtors® recently reported, investment opportunities in California are increasingly elusive, causing more potential investors to seek out land or other ways to make money in real estate. The foreclosure pipeline has mostly dried up and rising rents have made rental property highly lucrative.
As the U.S. News & World Report notes in an article on making money on rental properties, the number of households that rent has steadily increased since 2005. While in the past investors looked for fix and flip opportunities, many are now seeking properties that can provide longterm passive income. Christine Giordano reported on this trend and tapped Partners Trust Commercial Associate Partner Daniel Sanchez as a resource.
While a monthly check sounds like a great deal, there is still reason to be cautious and wise about looking for properties to generate rental income. It’s important to factor in the costs of upkeep and repairs.
Investors will also need to understand financing and set realistic long-term goals. A firm foundation in your market fundamentals including vacancy rates and property ratings is essential. “Look for real estate with great potential. Properties that tend to do well are near schools, expanding retail or trendy points of interest, local transportation, or surrounding malls,” said Daniel in the article. “Once it’s yours, maintain the exterior and keep your costs down with desert landscaping, low-flow toilets and tankless water heaters, ” he added.
Making the right choice in rental property requires expert advice. The property condition, location, age, local schools, and many other factors will need to be included in any decision. Our Associates work with investors of all types from major developers to individual investors looking for an income-generating property. Every investor has different goals, it’s our job to help you achieve them.