Guide for buying your first rental property in Hollywood
Are you considering buying your first rental property in Hollywood and investing in this type of business? Is it a good idea and is it worth it? Well, this is your first rental property so you will definitely need a guide to follow.
Hollywood real estate
Hollywood real estates are not cheap. They are way higher than the national average. The average median home price is $315,000 and the median rent is $1,3010 (which is also higher than the national average).
Most people here rent a place, that is why having a rental property here is a good business plan. 92% of people are renting. Hence, buying a home in Hollywood to rent it later needs preparation and, because it is your first time, professional advice.
Things to know when buying your first rental property in Hollywood
Before you take any step in buying your first rental property in Hollywood, there are some things you should know and learn, in order to make the best financial and business idea.
Hire a professional to help you do research about Hollywood real estate
Do research, but if you are not from Hollywood and you don’t have experience in buying properties, you will definitely need a relator and a counselor. If you need to find a home in Hollywood and move in there as well, it is not the same as finding a rental property. Hollywood is a very popular place for tourists too, so use that opportunity.
Calculate everything in advance – expenses and profits
First, calculate all the expenses you will have. There will not be just paying for the property. There will be remodeling costs, maintenance, insurance… After that, calculate how much profit will you have after everything is done. Don’t expect to be immediately in the “plus”. It takes time (sometimes a couple of years) to make a profit.
Check the property
Hire a home inspector and schedule a home inspection to check water, electricity, roof, walls, basement, everything that is there. After that, you will get a clear picture is it worth it to invest in that property or not. If it is too old and needs too much remodeling, it is probably not a good idea to buy it because you don’t have enough experience to take that big step.
Don’t choose an expensive home as your first rental property
Your first property does not have to be a big mansion that is worth a million. In the beginning, choose a less expensive property and try to work it out. After a couple of years, you can consider buying a bigger property.
Consider loan options
When buying your first rental property in Hollywood there are a lot of loan options. Check all the finances and all the options. If you have a partner (many investors do), research the best option together. You better choose an experienced investor than a partnership with your friend.