Humphreys Pacific Coast Real Estate: Orange County
Glenn Humphreys
(949) 463-6358(949) 463-6358

Investing in Rental Property

There are many ways to invest in property such as through investment vehicles such as Real Estate Investment Trusts (REITs) and exchange traded mutual funds for example, but investing in physical property for rental purposes has gained immense popularity in recent decades.

 

BASIC RENTAL PROPERTIES

This type of investment is as old as the practice of landownership itself.  A person will buy a property and rent it out to a tenant, thus becoming the landlord responsible for paying the mortgage, taxes and costs of maintaining the property.  Ideally, the landlord charges enough rent to cover all of the “operating costs”.  A landlord may also charge more in order to produce a monthly profit, but the most common strategy is to only charge enough rent to cover expenses until the mortgage has been paid, at which time the majority of the rent becomes profit.  Furthermore, the property may also have appreciated in value over the course of ownership, leaving the owner with a more valuable asset.

As with any investment there is an element of risk involved.  For example, your property may be vacant for periods of time in which you will not earn rental income to cover the above mentioned costs.  As the landlord you become responsible for all the repairs to the property and dealing with any issues your tenants may have.  However, if you do not feel comfortable in this capacity, you can always outsource your responsibilities to one of the many professional property management companies that can take care of this for you in return for a fee.

With careful research and my help, finding the right property for investment and rental purposes is very achievable.

 

Please contact me now to determine if the investment property you have found makes sound financial and economic sense, or alternatively let me help you find a property that does.  I have the financial tools to make this a very easy process and can help search for properties in California and across the entire U.S.A.