There are many good ways to grow a real estate portfolio, and if your goals include expanding the strength of what you currently own, the best thing you can do is partner with a San Francisco property manager. You’ll leverage our experience in the local market, our vast network of professionals who are buying, selling, and brokering investment homes, and our ability to identify a good rental property.
Many investors, when they think of growth, imagine additional acquisitions. That’s certainly one way to grow. Tell us your investment goals, the neighborhoods you’re most interested in, and the price point that keeps you within your budget and financially comfortable. We’ll show you what’s available and make some recommendations about what you should see.
Acquiring new investment properties is not the only way to grow a portfolio, however. You can also grow by improving what you already own. You can grow by exchanging a property that’s no longer performing the way you expect it to for another property that brings you more income and better ROI.
Growing a rental portfolio can mean better tenants, less vacancy, and creative financing options.
You can enjoy smarter growth when you’re navigating the process with your property management company in San Francisco.
Here’s how we help investors just like you.
Reviewing Your San Francisco Investment Goals
Why are you prepared to grow now? Have you met all the goals you set for yourself earlier? Or, are you shifting your investment goals based on the market and the current opportunities?
These are some of the questions we’ll be asking when we talk about your plans for growth.
Other questions we’ll need to explore include:
- Are you earning what you’d like to earn from your existing portfolio or do you want to earn more?
- Is cash flow more important than appreciation? Are you looking for a mix of both?
- Do you prefer single-family homes, multi-family properties, commercial, residential, short-term rentals, or long-term rentals? Are you open to diversifying your portfolio as it grows?
- What has your growth strategy been up to now?
By working with property managers who know the importance of investing in the right properties, we can talk through what type of investments are going to work best for you. We can help you make better decisions and we can help you avoid some of the risks and the mistakes that are so common.
If you don’t already have investment goals in place, this is the logical place to start. We need a roadmap so we can put together an action plan.
San Francisco property managers can help you establish those goals if they’re not already in place.
Identifying New Investment Opportunities
Acquiring a new investment property in San Francisco is typically an expensive undertaking. The market is always competitive here. The prices are always high. You can expect that finding a new investment property is going to take some effort.
While a good real estate agent or a qualified broker can help you identify what’s for sale, you’ll need the support of a property manager to help you determine what makes sense for your investment goals. We know what tenants are looking for. We know what they’re willing to spend. We know what locations are best, what amenities are required, and how much cosmetics matter when it comes to effectively leasing a home in San Francisco.
A good property manager will know the buildings. We’ll know the local rental ordinances and we’ll understand the laws. We’ll be constantly following rental values, vacancy times, turnover rates. Working with a property manager, you won’t simply be acquiring a new investment property. You’ll acquire the right investment property.
Before we can help you find your next new property, we’ll talk about:
- Whether you want a unit, an entire building, or a single-family home in San Francisco.
- Your budget. How much are you spending and how are you financing this deal? The way we approach a cash purchase will be different from how we approach your acquisition that requires a mortgage.
- Your plans for the property. Will you rent it out with a long-term lease? Are you thinking about a short-term vacation rental?
- What you’re hoping to earn. Your expected rental rate will help us find viable options for your next acquisition.
Buying a new property is an excellent way to grow. Your property management partner can make the process faster and easier to navigate.
Grow Your Portfolio by Making Property Improvements
There are opportunities to grow your real estate portfolio with the properties you currently own. When your goal is to earn more in monthly rent or to make your property more valuable with an eye towards a future sale, you’ll want to make sure that it’s modern, upgraded, and attractive to anyone who may buy or rent it.
When you’re investing in renovations and upgrades, make sure you’re choosing wisely. Your San Francisco property manager can make some good recommendations. You don’t want to spend so much money on improvements that you remain in a deficit for too long. The point of this work is to increase the strength and value of your whole portfolio.
Some of the most cost-effective renovations that we recommend to owners who want to grow include:
- Better curb appeal. Whether we’re talking about the outside of your building or a green, simple lawn in a residential neighborhood, curb appeal contributes to value. It sets a standard and shares a first impression. Power wash the outside of the building. Clean the windows. Install some easy, attractive landscaping. Make sure the lighting is bright. Give your property the best possible chance to earn as much as it can and attract the best tenants.
- Hard surface flooring. Carpets are pretty standard in rental homes. It’s also quick to deteriorate. Carpet is dirty. It traps allergens, pet odors, dirt, and dust. Even when you have it professionally cleaned during turnover periods, it’s still old carpet. Instead of replacing the carpet, consider installing hard surface floors. This will help you grow your portfolio by increasing the rental value of your property. The unit or the home will appreciate faster as well.
- Open floor plans and working space. Remote work is here to stay, and tenants are looking for a home where they can live, work, study, and grow. Make sure it’s easy for them to access good Wi-Fi (thick walls in older San Francisco buildings can be a problem). Open up some space for a work area if you don’t have a separate bedroom that tenants can use as an office. Consider built-ins like bookcases or desks.
These are simply some examples of how by improving your San Francisco rental property, you can grow a portfolio that may have stalled. Your rental property brings in more money and better tenants. That’s a win. That’s growth. If you cannot afford to buy a new investment property, you still have the potential to grow.
Your property manager will know which upgrades are most important. We’ll know where to find the vendors and contractors who can make the repairs right away and within budget. It’s a valuable resource to have.
Leveraging a 1031 Exchange with San Francisco Investment Property
Another path to growing your real estate investment portfolio is a 1031 exchange. This is a popular program that allows investors to defer the payment of capital gains taxes when they sell an investment property.
It offers more than tax benefits, however. It also gives you the opportunity to upgrade what you own. This offers you a path to growth when you want a new investment property or you are ready to release an investment property or you’re looking to shake things up in your portfolio.
Property managers in San Francisco understand the mechanics of a 1031 exchange. We can help you prepare the property you want to sell. We can help you identify a new investment property that makes more sense for your investment goals. We can connect you with a qualified intermediary, who will be requested to hold your funds in escrow when you sell your first property and prepare to buy your new property.
There are some strict rules and requirements that come with the 1031 exchange. Most importantly, you have to exchange like properties. That simply means that you’re selling an income-producing home and buying another income-producing home. You can sell a single-family home and buy a duplex. You can sell a four-unit apartment building and buy a condo. As long as you’re not living in the home yourself and you’re selling one investment for another investment, your purchase will qualify.
Take the proceeds you earn from the sale and invest them in a new property that helps you grow. This is what we help you do.
Talk to us when you’re ready to grow your investment portfolio in San Francisco. We can take a look at where you are, talk through all of your options, and come up with a plan to bring you better results.
Contact our talented team at Sharevest Property Management.