When you want to invest in Merced rental properties, you have a lot of options. You can buy and flip a house that you’re hoping to make money on quickly. You can invest in a small apartment building with 10 units that you plan to hold for the long-term. You can even consider vacation and short-term rental homes.
In today’s blog, we’re taking a look at the rental property types that make the most sense in the Merced market. There’s always a demand for well-maintained rental properties, no matter what kind of homes they are.
Renting Out Long Term Merced Rental Properties
According to the National Real Estate Investors Association, two-thirds of the tenant population live in single-family homes or units in multi-family properties such as duplexes, triplexes, and quads. The remaining one-third of the tenant population can be found in apartment buildings.
Renting out these homes for the long term can be a stable and profitable way to invest in real estate, especially in the Merced market. You’ll have consistent rental income, lease terms of at least one year, and the ability to depreciate the property’s value at tax time, even while taking other deductions for things like management fees and maintenance.
If you understand the value of long-term rental homes to the market, you’ll know that these properties are excellent investments. Look for a rental home that’s in a desirable location and in good condition.
Short Term Vacation Rentals
Vacation rentals have grown in popularity, thanks to online booking sites such as Airbnb, HomeAway, and VRBO. This is a new way for investors to make money on properties they already own or those they acquire for the specific purpose of renting the home out to temporary guests. This is an excellent option for people who want to use the home themselves from time to time. You simply block out those dates and make the property unavailable to tenants.
Short-term tenants will expect your property to be furnished and completely outfitted with things like dishes, cookware, linens, and a television. You’ll have to provide utilities and Wi-Fi. The turnover is far more frequent, and you’ll spend more money on cleaning, marketing, and management than you would with a long-term property. However, you also earn more per-night when you rent out a home in the short-term.
Merced Owner-Occupied Rental Properties
In some cases, property owners live in the properties that they’re also renting out. A duplex, for example, can include one unit where the owner lives and one unit that’s rented out to tenants. Maybe you have a four-unit building and you live in the largest unit. This is one way to exempt yourself from the rent control restrictions of The Tenant Protection Act.
This type of investment property also allows you to keep an eye on the property 24 hours a day. You’re there, so you can manage any emergencies that might come up. Owner-occupied rentals can help you pay down your mortgage while earning income on the property you actually live in. It’s also easy to finance an investment such as this.
There are a lot of options when you’re looking to invest in Merced rental properties. We can talk about townhomes, single-family new construction homes in HOA neighborhoods, and even commercial or mixed-use properties. Whatever your investment goals happen to be, we can help you achieve them. Contact us at River Drive Properties.
River Drive Properties provides effective and professional property management services in Merced and the surrounding areas including Fresno, Modesto, and Turlock. We have extensive experience with both single-family homes and multifamily properties.