Looking to buy an investment property in Redding, CA?
Every rental property owner wants to generate passive income and accumulate wealth. Buying California investment properties is an excellent way to diversify your investment portfolio and enter a market with a high degree of upside in the coming years.
The city of Redding, California is a great area to invest in, as the housing market carries a significant capacity to offer regular income to rental owners. Just consider the health of the local economy and market trends.
In this article, we’ll take a closer look at property investment opportunities in Redding. You’ll learn about the top neighborhoods with potential for smart investments and why it pays to set your sights on this city in the first place.
Investing in Redding, CA
Thinking of buying your first rental property? Redding offers great value for property investors in California. The past few years have shown a solid seller’s market. Home prices are on the rise and quality rental units are in high demand.
When you look at the overall investor friendliness in Redding, it fares better than many other areas in California. Redding didn’t have rent control until the new statewide rental control laws finally came into effect recently. It is more relaxed in terms of regulations than larger cities in the state.
Tenant evictions take a long time in bigger cities like San Francisco and Los Angeles. You have to factor in the processing times even if you have a very good cause for eviction, such as a tenant not paying rent. This isn’t as big of an issue in Redding.
The city of Redding has demonstrated a steady climb in real estate appreciation. When you are buying an investment property, this is definitely something to take into account. The average appreciation has been around 5% in recent years.
Another thing to consider is the average rental rate in the area. As a rental property investor, the rental rates in Redding are more or less ideal—not sky-high as in cities like San Francisco, but still enough to generate solid returns.
Did you know that Redding has a sizeable student market? Higher education opportunities in the area include Redding Institute of Technology, National University, Shasta College, and Simpson University. You'll have the option of providing student rentals, for which you can often charge higher-than-usual rates.
Only around half of Redding residents own their homes. Since owning a home isn’t that affordable for the large majority of people, the demand for rental homes isn’t going to disappear any time soon.
A significant number of tourists pass through Redding. The outdoor activities together with the mild climate make the Redding area an attractive place to visit. That’s exactly why you may consider a short-term rental strategy. It could be quite lucrative in Redding and the surrounding areas.
The local geography shapes the long-term potential of investments in the city. As Redding is wedged between mountains on three of its sides, there isn’t much potential for unrestricted expansion in the future.
Top Redding, CA Neighborhoods to Consider
Let's take a look at some of the top neighborhoods in Redding. As a potential property owner looking to put your investment dollars in Redding, any of these areas is well worth your attention.
- Blackfoot Trail and Sonora Trail
- Benton Drive and Quartz Hill Road
- City Center
- Centerville
- Alta Mesa Dr/Hartnell Ave
How to Prepare for Your Redding Investment Deal
Evaluate Potential Cash Flow: Before you make any investments, understand your expected cash flow. You may have to deal with upfront expenses, including costs related to the minor (or major) improvements. Consider all your monthly and annual expenses in comparison to your expected income. Factor in property management fees if you decide to remove the burden of self-managing by hiring a professional property manager.
Prepare for Negotiations: Even during a seller’s market, you may find specific bargaining chips that could work in your favor. You just need to have your negotiating skills and mindset ready for the action. It’s recommended to get a property inspection done before closing. The inspector’s report could give you leeway in negotiating a lower selling price.
Understand Each Property's Background: When you are researching Redding investment properties, ensure that you read up on more than just the bare essentials of a property. Look into the wider context behind the photos and sales copy. The employment situation, demographics, neighborhood amenities, historical trends, and future projections are all important things to consider.
Consider Hiring a Property Management Company: Your Redding investment property may demand more time and energy than you realize in the beginning. As a rental owner, you'll need to deal with tenant screening, rent collection, emergency responses, maintenance, repairs, and many other tasks and duties. You'll also have to make sure you're up-to-date on local landlord-tenant laws, especially those that govern contentious issues like evictions and
security deposits.
Reassess Before Investing: Before committing to anything, make sure that all of your data and projections are accurate. You don’t want to discover later that your returns are significantly smaller due to errors in your initial research and financial plans. This is another area that could benefit from the input of an experienced property management team. Someone with an intimate knowledge of the Redding real estate market can evaluate your assumptions and offer useful perspectives.
In a Nutshell: Investing in Redding, CA
Rental investments in Redding, CA offer significant potential, due to a number of favorable factors. The rental market is strong, local development comes with geographic limits, and average incomes are relatively high in the area.
The combination of these unique circumstances in Redding means that you have good chances of getting a solid return on your investment. To make things easier, consider the benefits of professional property management services. The associated savings in time and reduced stress are well worth it.
Get in touch with
Authority Property Management today to understand how you can benefit from our expert services. We'd love to tell you more about the services we can offer to help your rental property thrive.
