Lake Forest / Mission Viejo Real Estate Investors pay “More or Less”

Investors Pay More vs LessInvestors Pay Less

Last night I spoke to a Saddleback Valley man who wants to invest in a condo.  He (like so many others) is receiving terrible returns on his traditional investments.  After he passed on a property that I told him would make a perfect rental, I spoke with him in detail about the differences between buying a home that you will reside in verses a home that will become a rental.  We also spoke about what kind of home will ultimately cost him more and what kind will cost him less.  See above. 

Here are few more tips:  When you buy an investment home, don’t go in and upgrade it with crown molding, high end flooring or perfectly matching appliances.  Instead make sure you have a home warranty that you keep in place year after year.  Make it clean, change flooring between tenants if it needs it and use the home warranty to replace unfixable appliances as they break down over the years. 

While many home owners shy away from homes that have street noise, most renters do not as they have been living in apartments that traditionally are built by busy roads and freeways.  Also renters want to live near work and have many rental options to do so.  On the other hand, buyers are willing to live farther from work to achieve the “American Dream”.

If you would like to work with a Broker that practices what she preaches and owns and maintains profitable rentals, I’d be happy to share my expertise with you.

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