James, Home Owner in Alhambra, CA

looking to get an investment property. Is it better to buy near where I live, or out of area?

Asked by James, Alhambra, CA Fri Jun 29, 2012

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Hi James,

Our brokerage has quite a bit of experience with investment properties. We have over 30 years of experience. If you have a lot of equity you want to invest, my uncle is also a Vice President at Merrill Lynch / Bank of America and my aunt is a CPA.

The main point you should consider is what your goals are. Are you planning on buying & flipping, holding long-term, or leasing? For buying & flipping or holding long-term, you just need a Realtor (like me) familiar with the market(s) you're interested in. For leasing: 1) If you have the time and want to maximize your ROI, then manage the property yourself. 2) If you don't have the time and still want to max your ROI, just hire a management company. You can ONLY do option 1 if you live near the investment property.

I am actively helping an investor find a property in Alhambra as I type this. I'm sure I can also help you. Our brokerage also handles mortgages, loans, and refinancing so we can also help you close with financing. If you prefer to just buy all-cash, we can do that too but usually it's smarter to leverage.

Give us a call and we'll help you find some great ARV / investment properties in Southern California :)

-William
310-256-3729
GoldenLandInc.com
Golden Land Investments & Financial, Inc.
0 votes Thank Flag Link Mon Sep 17, 2012
If you can find a positive cash flow property close to where you live, definitely do that first. If not, just drive an hour east of where you are in into Riverside and SB County and start looking there next.
0 votes Thank Flag Link Fri Jun 29, 2012
Hi James!

Ben is right on the mark. If your are going to assist in repairs or manage the property, then I recommend buying close to where you live. I have multiple rental properties and I purposely look for properties within 20 minutes of drive time around my home - which is within about a 10 mile radius of my home. I do this because I manage them myself and don't want a 1 hour one-way night trip for a problem.

If you're a new investor, check out my investor blogs:

http://www.trulia.com/blog/dddrealtor/

Good Luck!

Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
210-373-6160
210-881-6760 (Fax)

http://www.dddrealtor.com

'Serving all Your Real Estate Needs'
0 votes Thank Flag Link Fri Jun 29, 2012
It will depend on a few considerations and how they fit in with your investment plans

1. How "hands on" you plan to be. Will you want to personally handle repairs, monitor condition.
If you are handy and plan to be readily be available to handle any property related need such as emergency plumbing, etc. this can save you money and improve your Net Operating Income.

2. If the investment property has sufficient cash flow even after deducting expenses for Property Management. You can probably consider investing out of area.

3 If you invest out of the area, you will want to get input from area professionals.

There are many investors that seek out property investments in other areas with sufficient cash flow, property management, areas with low vacancy and a steady pool of renters, in a stable job, reasonable potential for appreciation. Plus you will want to check with our Accounting Professional for costs incurred to visit the property periodically.

I have access to investment opportunities in other states if you are interested in gathering more facts or examples of investment opportunities - Never any obligation.

Thanks!
0 votes Thank Flag Link Fri Jun 29, 2012
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