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5 Steps to Buying Your First Investment Property in Orange County

When done correctly, real estate investment is one of the most rewarding ways in which you can invest your money. Buying your first property might seem intimidating, but if you follow the below advice, you should be able to find, purchase and create an investment that provides additional income for you and your family. In our latest post, we offer 5 steps or tips to buying your first investment property in Orange County or the surrounding areas!

A quote attributed to Andrew Carnegie states that “90% of all millionaires become so through owning real estate.” While things might have changed a bit since the 1830’s when Mr. Carnegie stated it, the same philosophy still applies today. Basically, owning investment property is a great way to make money. However, you must make smart decisions about where to put your money.

Shop Around

You shouldn’t ever dive right in and purchase the first property you see. Look at many properties and really get an idea of what’s out there for you. Learn as much as possible about the local market, real estate trends, and what is going on with other properties in the area. The more you can learn, the better off you will be when buying your first investment property.

Location, Location, Location

It isn’t just about the property you are buying, it’s about where you’re buying it. The same house will fetch different rents depending on where it’s located. Really get to know the area you want to invest in. It isn’t only about if you like it or want to live there, but more about what the numbers are showing. How fast is the area growing? Are rents rising faster than in other parts of the state? Spend time learning about the market, local trends and what other investors are doing locally. You can never know “too much,” so spend as much time as possible learning about what is going on around you. Look at as many properties as possible so you can find the best property for your needs.

It’s Business

Just like choosing the neighborhood based on market statistics, you should also look at the property the same way. It’s not about buying the house you would want to live in, but rather the property that has the greatest potential for high returns. People use many different formulas to determine if a property is a good investment. A simple one to consider is the 1% rule which states that you should bring in 1% of the properties value each month. If you paid $150,000 for the property, you should aim to collect at least $1,500 in rent each month for the home.

Be Mindful of Your Math

Of course, your calculations need to go much further than the 1% rule stated above. You should run a full cash-flow analysis to determine if a Orange County property will be a good investment. Determining your exact ROI can be a tricky process. Determining a “good” ROI percentage can be tricky too is it varies widely between markets and property types. Many investors will say to aim for at least a 10% return, but this can be different depending on your situation.

Network & Grow

The best advice you will get is from people who have been in your shoes. Local market experts and real estate advisors can help you make smart decisions when buying your first investment property. Network with seasoned investors through local groups both in person and online. Keep adding to what you know and you will increase your opportunities exponentially.

Are you ready to purchase your first investment property in Orange County? We can help! Send us a message with your selling goals, or give our team a call now! 949-625-4533


Broker/Realtor/Investor/Mentor (41 years experience) Specialties: Buyer's Agent, Listing Agent, Foreclosure, Short-Sale, Property Management, Landlord I'm a Full Time Real Estate Professional, house flipper and mentor to many of my clients. I am here to help you get top dollar for your home or get you the best price for a home that you are going to live in. I have over 40 years of real estate experience for you to draw on and actively list and sell over 20 homes a year. I have sold over 600+ homes in the last ten years alone. I am a very skillful negotiator and will work diligently to help you realize the best possible price when buying or selling your home. With my Exclusive Home Acquisition & Sales System, I can find the Right Home for You! I have access to homes no other Realtor will show you. I can show you how to save an average of $10,000.00 on the purchase price. We will find a home that fits your needs, in a neighborhood that suits your style. If you are selling your home then I can bring all the professionals to you. I always include professional photos in ALL my listings. I have contractors standing by to assist with those upgrades if needed. I can also quickly get you ALL CASH offers for your home if you desire. My marketing surpasses all other agents. It begins with extensive internet advertising to hundreds of websites throughout the world. I do direct mail marketing for you home and also knock on doors in your neighborhood when I am holding an open house. I hold you home open to expose it to as many buyers as possible. My Exclusive program is designed to sell your home for Top Dollar in Any market. I am an experienced flipper here in Orange County and therefore can offer you my over 40 years of real estate experience. The information is available to you at no charge! If you like what you see, please call me and setup Your Free Consultation.

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