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Define Your Investment Goals

  1. Define Your Investment Goals

  2. Identify Your Requirements

  3. Know Your Financial Readiness

  4. Work With an Investment Property Advisor

  5. Develop a Purchasing Strategy

  6. Contact us to begin the process

Define Your Real estate Investment Goals

Before you begin your Southern California income property search you must first identify your reasons for investing in Southern California real estate.

Buying Southern California Income Property as an Absentee Investor

  • Do you want to take your money out of a 401K plan or the stock market to get the security of Southern California Real Estate?

  • Do you want to do sell property you now own and purchase income property in Southern California?

  • Are you interested in examining 1031 exchange opportunities in Southern California?

  • Do you want to buy fixer-upper properties and improve them for quick resale or rental?

Buying Owner Occupied Income Property in Southern California

  • Are you tired of renting but are not sure how to afford a good home in your favorite neighborhoods?

  • Have you been saving to buy a home but are unsure about where the right place is to put your money?

  • Do you want the house that you will live in for the next 20 years or do you intend to work your way up to the house of your dreams?

Identifying your objectives and setting investment goals you will help you to focus your search for an income property. Each time you review a listing or visit a Southern California income property you should ask yourself would this property meet my objectives? Some of the specific factors that you should consider are:

Neighborhoods in Southern California

Determine which areas could accommodate your lifestyle needs and investigate the market in those neighborhoods. Are they in a healthy state to be buying? Are the prices within your range? Research recent sales and average return in investments for properties in your chosen areas.

If you are considering owner-occupying, just because you've chosen a certain type of real estate to improve your financial situation that doesn't mean you should sacrifice what is important to your life. Consider the consequences of living in a property that is not ideally situated to your lifestyle.

Southern California Rental Market

Consider whether there is a strong enough rental market in your chosen areas; gather statistics on vacancy rates, etc. The Southern California area market usually has several pockets where rentals are always in high demand. Find out what the real estate market is like in those pockets.

Economic Conditions in Southern California

Identify whether the general economic conditions are favorable to investing in real estate (look at mortgage rates, economic forecasts, etc.) Be aware of national, regional and municipal economic conditions.

Investment Term

Determine whether your real estate investment will be short or long term. Most financial experts believe that real estate is better as a long term investment but there are investors who buy properties to renovate and resell and achieve short-term success. You need to know which path you intend to follow as it may affect the type and condition of properties you view. Have an idea of how long you intend to live in your investment. You may wish to continue owning the property after you decide to stop living there yourself. This isn't something you need to determine before you buy but it is good to always know your options and keep reviewing them in your mind as time passes and your situation changes.

Financial Opportunity

Compare your real estate opportunity to other investments (stock, bonds, futures, gold, etc.) Identify what is important to your financial future (short term gain, long term stability, positive cash flow, consistent rates of return, etc.). If you are currently renting an apartment from someone else be aware that there is an opportunity cost in continuing to pay your money to your landlord. For example, if you are paying $1000 per month to rent and you continue to rent for another year the opportunity cost of not changing your situation is $12,000.

Taking the first step means opening your eyes to what is happening in the market around you. You will need to educate yourself on the types of residential real estate available in your city in order to better understand the types of opportunities that are out there. Compare different types of income properties in your city to determine which best suits your investment and living criteria. Educate yourself on what is involved with having tenants and know your rights and theirs by familiarizing yourself with city, county, state and federal laws.

next:  Identify Your Requirements


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Information throughout this site is deemed reliable but not guaranteed for Aliso Viejo, Capistrano Beach, Corona Del Mar, Dana Point, Laguna Beach, Laguna Niguel, Monarch Beach, San Juan Capistrano and Newport Coast properties.  By submitting your contact information on any form on this site,  you are consenting for The OC Coastal Group  to contact you even if your name is on the Federal "Do Not Call List".

The information throughout this site is deemed reliable but not guaranteed and is for the consumer’s personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the SoCalMLS®. This web site may reference real estate listing(s) and / or closed sales held by a brokerage firm other than the broker and/or agent who owns this web site. This site and it's contents are copyrighted and may not be copied, reproduced or distributed without the express written consent of The OC Coastal Group.

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The OC Coastal Group are realtor specialists in Dana Point real estate, Monarch Beach real estate, Laguna Beach real estate, Laguna Niguel real estate, San Juan Capistrano real estate, San Clemente real estate and Aliso Viejo real estate in Coastal Orange County, California & surrounding South Orange County, CA realty including coastal golf course homes, beach properties, gated communities, 1031 exchanges, investment opportunities, income properties, ocean view estates, houses, condos & townhomes.

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