Small Investments Can Still Be Profitable

by Rita Alonso 04/14/2019

So, you want to buy a property and offset it with rental income, but a multi-family or apartment complex is a bit too rich for your bank account? No problem! Most of the steady increase in new renters comes from young millennials, and you can cash in on this increase as well by buying just a slightly larger property. Renting out rooms to students, or the other half of a duplex is a great way to supplement your income or offset that larger house purchase you don't completely fill yet.

Some layouts are better for segregating (for privacy) and renting out than others. Look for homes with secondary entrances, guest houses, separate parking, and multiple bathrooms or a finished basement with its own bathroom to ask for the highest rents. Your agent can help you find these properties; they are experts in the needs of potential landlords.

Owning and Renting a Duplex

Duplexes have some significant income advantages, especially for new investors. If you're planning to live in one of the units for at least a year, you'll qualify for FHA loans that can cover over 90 percent of the property value. Additionally, you can rent out the other side to offset your payments. That lets you be both a homeowner and a landlord at the same time, whereas if you were to purchase a single-family home with an FHA loan, you would still have to live in it for a year before renting it out, cutting down on your potential income. The downside of living in and renting out your duplex is proximity. You typically share a wall with your tenants, which means very little is hidden from them, and you're always on call if they need something. 

You can also rent out your duplex to your elderly parents or grown children, which allows you to be together while having separation and privacy.

Being a Landlord

No matter what size your rental property, from a single room to an apartment complex, you are responsible for the property. That means all maintenance, landscaping, upgrades, appliances, emergencies, and anything else that crops up is yours to take care of in a timely manner. Be sure to check your state and local laws for the specific landlord requirements and tenants’ rights in your area.

Next time you make that open house list, be sure to ask about properties good for sharing with a tenant. Your realtor can help!

About the Author
Author

Rita Alonso

As a native Sonoma County resident, Rita has witnessed many changes over the years. Sonoma County has invested considerable time and energy into revitalizing our downtown areas, developing mid to high end homes and constructing affordable housing, yet the warmth and small town feel of decades past still remains. We have fine restaurants and big-city entertainment, as well as great schools, including a top-notch junior college and state university, all located in the heart of Sonoma County’s wine country. This warm and friendly county is an ideal location for you and your family.

Rita is passionate about what she does and people are her first priority. By working with a full time Real Estate Professional, who really understands the market and has a pulse on Sonoma County, you can be confident that Rita’s professionalism and community connections will lead you home.

Buying or selling a house is a big step. Rita is committed to helping you throughout the process. You can trust that she will work with you to understand your vision and do all she can to insure that your desires are met. She is committed to meeting your needs with integrity and top-level customer service. Rita is a great negotiator and she is on your side to get the price you need to sell or the price and credits you need to buy. Please call today so that Rita Alonso can go to work for you!

About Rita Alonso

She is a graduate of Montgomery High, Santa Rosa Junior College and the University of San Francisco. She had worked in the mortgage industry for 10 years before getting her Real Estate license in 2004, specializing in buying and selling residential, commercial, investment properties, along with experience in short sales and bank owned properties. She is a member of the National Association of Realtors, the NorthBay Chapter of Realtors, the Women’s Council of Realtors, and the Santa Rosa Chamber of Commerce. Rita has been a Top Producer for over seven years and she has just joined a dynamic team of Top Realtors in Sonoma County called Marketing Masters. With her team, Rita can make a difference in top customer service and getting the job done.

Rita is also the mother of two grown sons and two grandchildren and continues to enjoy being actively involved in the Sonoma County community.

Rita’s goal is to exceed your expectations as your Realtor for life.
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Please call today so that Rita can go to work for you!

Rita Alonso
Professional Real Estate Agent
“Helping You See Your way Home!”
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