Real estate investors have a lot of options when they decide to buy a rental property in Oakland. The market has single-family homes in established neighborhoods, new construction multi-family buildings with a lot of units, and everything in between.
We always recommend that investors consider buying more than one property in the Oakland rental market. You’ll find that you can do a better job protecting yourself against vacancy, and you’ll be able to diversify your real estate portfolio in a way that’s healthy and financially sound.
Invest in a Mix of Single-Family and Multi-Family Rental Properties
Single-family homes are always going to make great investments, especially when you’re buying rental property in Oakland. There are lots of neighborhoods where these homes are in high demand. Tenants are willing to pay higher rents for the space and privacy that come with single-family homes. If you invest in a collection of these properties that are well-maintained and in a desirable location, you can earn some excellent rental income and build a solid schedule of returns on those investments. Single-family homes will also appreciate quickly, and you’ll find that the value of your asset climbs reliably year after year.
In addition to buying single-family homes, we invite investors to consider multi-family rental properties in Oakland as well. There are many ways that this can help you earn more with your rental investments. They’re going to provide more income for you and less risk. Instead of collecting one rental payment every month, you’ll collect two or three or four. This protects you against vacancy risks. If one unit is vacant, you still have income from the other units.
Lower risk and higher cash flow are excellent reason to invest in both multi-family homes as well as single-family homes. Buy in different neighborhoods and buildings, and see which properties perform best. It’s a great way to measure your investment success and make adjustments as needed.
Look at Different Ways to Finance your Real Estate Investments
Another great reason to buy more than one Oakland rental property is that it allows you to diversify your financing options. Some investors prefer to pay in cash and others like to leverage their investments with a traditional mortgage. Owning more than one rental property will make you a better credit risk. It also gives you more access to equity and cash if you need it.
Look for different ways to finance more than one investment. You can find creative ways to borrow money, even structuring the deals so that you’re not throwing down a large down payment. If you’re primarily or completely paying the principal, you’ll find your cash flow and your ROI can improve quickly. You can also breathe some new life into your investment portfolio with things like a 1031 exchange when you own multiple properties and you decide you want to buy something new or sell a home without tax consequences.
The Oakland rental market provides investors with a lot of opportunities, and we want you to maximize what you can earn in this region. For more information about investing in Oakland, contact our team at California Pacific Realty.