Home values in the San Jose metropolitan area will drop sharply in 2024, falling faster than the country's other largest metros. As a new real estate investor, this is your opportunity to step into the local market!
Don't rush to buy property yet. Instead, use these tips to avoid the common mistakes many new investors make. Set yourself up for success with this guide today!
Ignoring Local Market Research
One of the biggest mistakes you can make is neglecting to gather market research. Don't focus solely on prices. Instead, look into the economy in the area.
Consider:
- If new businesses are moving in
- Which businesses are thriving
- The best neighborhoods
- The crime rate
Consider working with an experienced property management company. They can help you navigate San Jose's real estate climate. Leveraging their expertise can help you recognize which areas are the best investments.
Choosing an Overvalued Property
You could find a property you love, only for the price to continue climbing as you outbid the competition. Don't get caught in a bidding war.
You could end up paying more for the property than it's really worth. Remember, you want to invest wisely.
Have the property surveyed by an experienced home inspector. You don't want to realize the property requires thousands in repairs when you place a bid.
Neglecting Tenant Screening
Before accepting tenant applications, develop a tenant screening process. Gather comprehensive reports, including:
- Credit scores
- Eviction histories
- Rental histories
- Employment verification
- References
- Criminal background checks
Unfortunately, not all reports contain accurate information. You can outsource this process to a property management company. They'll help you find renters you can trust with your new investment property.
Skipping Preventive Maintenance
Schedule routine preventive maintenance and inspections. Inspections will ensure you spot minor problems with the property before they get worse. You can pay for smaller repairs instead of huge home improvement projects.
Your property management company can find reliable contractors at competitive prices. They can keep track of these projects, allowing you to focus on bigger tasks.
Not Accounting for Maintenance Costs
As a real estate investor, you'll have to consider the cost of:
- Paying off the loan
- Maintaining the hard
- Keeping appliances running properly
Unexpected expenses could pop up. For example, you may need to replace the roof. Don't forget insurance and property taxes.
Work with a property management company that offers financial services. They can help you make smart decisions without going over budget.
Succeed as a Real Estate Investor in San Jose
The most successful real estate investor knows not to do it all alone. If you want to ensure your success, hire a property management company. With professional services, you can maximize the earning potential of your new investment property.
Provident Property Management can help you experience less stress and more profit from your real estate investments. You can enjoy the benefits of investing without spending all your free time working.
Our family-owned and operated company is dedicated to providing clients with the best possible care. Contact us today for help with your real estate endeavors.
