Investing in Campbell Real Estate — Now is the Time
If you’ve been considering investing in Campbell real estate, now is a great time to take the plunge. After all, mortgage rates are at record lows.
Real estate investment creates an excellent passive income stream – which is taxed at a lower rate than wages. Further, passive income from rental properties tends to rise; as the market shifts, rental rates typically increase, but your mortgage payments stay the same.
The Secret to Successful Investing in Campbell Real Estate
I always encourage investors to look at multi-unit properties. In Campbell, multi-units are typically duplexes or fourplexes, but they can have as many as twenty-plus units.
The advantage of a multi-unit dwelling is that they sometimes go for the same price as a single-family home – but instead of just one rental income, you get two, four or more. This helps with maintaining positive cash flow.
For example, if you buy a single-family home for $500,000, your mortgage will likely be about $3,500/month. However, it’s challenging to rent out a half-million-dollar property for more than $3,000/month. The resulting $500 shortfall means you’ll need to feed the investment every month. Add in the cost of repairs and maintenance and the proposition quickly becomes a money pit.
But if that property had four units, you could rent out each unit for $1,200/month, allowing for a monthly $1,300 profit.
Why Investing in Campbell is Better than San Jose?
Although Campbell has fewer investment properties than San Jose, I recommend investing in Campbell and Santa Clara properties over San Jose for two reasons:
- Campbell is friendly to singles and families with excellent schools, numerous parks, and a vibrant downtown. People who are drawn to Campbell tend to be more stable financially and move less frequently, making them ideal tenants.
- Even more important, Campbell and Santa Clara have no rent control, whereas San Jose does. That means investors are able to set their rents where prices make sense for them and the particular unit.
Where to Buy Investment Properties in Campbell
Where are the best places to buy rental property in Campbell? There are several pockets of multi-units:
- Off Union Avenue
- Off Hacienda Avenue
- Superior Drive, Off Campbell Avenue
- Hamilton Avenue
- Rose Court near Campbell Community Center
- In the area behind Safeway – Wilton Drive, Adler Avenue, Nido Drive, and Echo Avenue
- Gale Drive behind the old Mervyns
Here’s How I Work with Investors
I don’t take no for an answer. In fact, when presented with a challenge, my attitude is always, “How can I make this work?” I can get very creative when it comes to real estate!
For example, I once had a client who was interested in buying a rental unit located above a storefront. This was near downtown, in a hive of trendy condos over retail space. I knocked on every door, made phone calls and otherwise persisted until I found an owner who was interested in selling.
Realty investment is my passion. It’s truly a thrill for me to track down that perfect property for my clients. I learned all about the business from a young age, watching my father’s very successful real estate investment business, and I’ve been an investor myself for years.
Who knows what the stock market will do next year?
Contact me today to take advantage of this unique time in the housing market and find out how I can help you invest in Campbell real estate!