When you’re buying a multifamily investment property in Silicon Valley, it’s absolutely essential that you make a list of your wants and needs – you and your REALTOR® will use that list to find the perfect property.
So where do you start?
This guide explains.
Make a List: How to Find the Perfect Investment Property in Silicon Valley
As you search for an investment property, you probably have a set of goals you want to reach. Naturally, you want the property to be profitable; you also want it to be safe, relatively easy to maintain, and certainly easy to rent to tenants (or to flip and sell). During your search, look at:
- Properties that fit in your price range
- Investment properties in potentially profitable locations
- A Property that will generate income, either by flipping or renting
- Homes that are structurally sound
Here’s a closer look at each.
Properties That Fit in Your Price Range
Ultimately, price will likely be the biggest factor in whether you can buy a multifamily property for sale in Silicon Valley. Your REALTOR will show you 2-4 unit properties that fit within your budget – and help you negotiate with sellers to get the best possible price.
According to a recent study, as many as 26 percent of buyers go over their initial budgets. After you’ve created your budget, stick to it – even if you want to “squeeze” to make things work. There was a reason you created a budget in the first place!
Find an Investment Property in Potentially Profitable Locations
Location is exceptionally important when you buy an investment property. You need the home to be in a neighborhood that’s easily accessible, close to major amenities, and certainly filled with favorable community attributes that renters will enjoy.
Generally speaking, properties closer to core downtown areas have the potential to generate more income than those that are farther away. Renters expect to pay more for proximity, too, so you can ask fair market value if you choose to rent out the units in the home. Likewise, if you’re flipping an investment property, you’ll most likely be able to sell it for more if it’s closer to downtown.
Check out the walking distance to local amenities, such as shops, restaurants and public transportation, as well. Generally, people tend to prioritize these things and are willing to pay more for easy access.
A Property That Will Generate Income for You
Even in a buyer’s market, an investment property can end up costing more than you think it will. Remember that: