Is Your Rental Still Working for You?

Owning a rental isn't a decision you make once. It's worth revisiting every year, with real numbers, not a gut feeling.

Here's what the local data shows.

In Costa Mesa, Newport Beach, Laguna Beach, and Corona del Mar, non owner occupied properties make up 30% of all ownership, the second highest rate in Orange County. But right now they make up nearly 35% of what's listed for sale, a clear sign more landlords are choosing to exit and reassess. Demand is real too: over a third of all cash purchases in this area came from non owner occupied buyers, the highest rate in the county.

Rates have changed the math.

At 7% to 7.5%, refinancing or pulling cash out of a rental doesn't pencil the way it used to. One more reason to check the numbers once a year instead of assuming.

Three questions worth asking:

     1. Is the rent actually at market, or has it fallen behind while a good tenant stayed put?
     2.What's the equity worth today, and what would that money do for you elsewhere?
     3.After expenses and today's rates, what is it really netting you?

If it's still worth holding, make sure it's managed like it. This is why property management is part of what we do, not as a pitch, but because a rental priced and maintained correctly is worth more to you every month than one on autopilot.

Sell it, hold it, or hand it off to be managed properly. The right call depends on your goals, not a guess. Real numbers are what make it an informed one.

Curious what your property is actually worth and earning today? Email me today ryan@torellirealty.com, for a free rental and equity analysis, no obligation.

Ryan Knapp | Torelli Realty | Sell, Buy, Invest, Manage
714-466-0471 | DRE# 02065582
Real Data. Real Talk. Real Estate.