Are you thinking about becoming a San Francisco real estate investor? You couldn't ask for a better market.
Research shows San Francisco's median housing prices are more than $1.2 million, much higher than the $424,000 national median price. The rental home vacancy rate has decreased by nearly 3% compared with the nearly 6% national average. San Francisco is a popular place to live due to its booming economy, top-tier food scene, and temperate weather.
This means San Francisco holds great promise for aspiring investors interested in flipping houses or owning rentals. Let's explore how to become an investor in the Golden City.
How to Become an Investor
Ready to invest in real estate in San Francisco? Research your investment strategy options first.
Flipping homes is a potentially profitable investment approach. It involves buying undervalued or fixer-upper properties and selling them for higher prices after making updates or repairs.
Another option is to buy homes and rent them out. This is also a good choice for people with access to credit union/ bank funding and construction skills.
Perhaps you're not interested in financing a bank loan, managing tenants and buyers, or buying real estate. Consider investing in a real estate investment trust, or REIT.
A REIT is a business that finances, operates, or owns income-producing real estate. REITs pool numerous investors' capital. Individual investors can then earn dividends without needing to finance, manage, and buy properties themselves.
Explore Locations
Choosing the right locations for your properties is critical for real estate investing success. The best property locations are those near secluded and private areas, amenities, and transportation. Amenities include shopping and parks.
Some of the top San Francisco areas to buy investment properties in include:
- Parkside
- Pacific Heights
- Glen Park
- Richmond
Parkside is popular since it's close to amenities like restaurants, shops, and cafes. Pacific Heights stands out for its upscale architecture, including Victorian homes.
Glen Park is another excellent area to invest in since it's close to the freeway and one of San Francisco's Bay Area Rapid Transit stations. Richmond is an in-demand area since its median home price is around a million dollars. This makes it one of the most affordable areas in San Francisco.
Consider Property Management
Budding real estate investors in San Francisco may want to hire property managers right away if they plan to own rental properties. A property management company can help you handle tasks like screening tenants, collecting rent payments, and communicating with tenants.
You'll have to pay your property manager a percentage of your rental income, but they'll save you time and energy. This will allow you to focus on expanding your real estate investment business by searching for more properties to invest in.
How We Can Help
Wondering how to become an investor in San Francisco? Decide whether you want to flip properties, own rentals, or invest in a REIT. Choose a bustling area of San Francisco if you plan to buy properties, and hire a property manager to help you.
At Kenny Realty, Inc., we take pride in offering top-tier property management services. We'll help you with duties like maintenance, marketing, and financial reporting. Get in touch with us to learn more about our services, and partner with us now!
Evan has been in the real estate and property management field for 6+ years. He is experienced in working with first time home buyers, is an Accredited Buyer’s Representative (ABR®), Seller Representative Specialist® (SRS) and Seniors Real Estate Specialist®(SRES®). He also works closely with Kenny Realty owners, getting their rental properties rented as quickly as possible. Evan is responsible for monitoring rental market conditions and advising our owners on market rates. He has outstanding communication with all clients he works with, keeping everyone in the loop at all times. He is the third generation of the Kenny family to practice property management on the peninsula.