As in many other communities in the South Bay, a large segment of the population in Redondo Beach, Redondo Beach, and Hermosa Beach are renters. These coastal paradises are popular vacation destinations, as well, with thousands of tourists constantly looking for lodging options in the area. All this makes income properties highly viable investments in the area.
Income properties are exactly what they sound like – they’re properties developed or purchased for the purpose of generating an income. Income on these properties can come from renting, leasing, or selling the property at a higher price than what you bought them for.
Income Properties in Redondo Beach, Redondo Beach, and Hermosa Beach
Here are some of the options available to income property investors in these coastal cities:
Many of the most sought-after rental properties in the area are found along The Strand – a paved bicycle path that runs along the Pacific Ocean, stretching from Pacific Palisades in the north to Torrance in the south.
Potential income properties in these coastal communities include duplexes, triplexes, and quadplexes, as well as single-family homes, condos, and apartments. Many of these properties were built in the mid-1900s, but quite a few are new construction homes.
Short-term rentals, or renting a unit for less than 30 days, are not allowed in Redondo Beach, Redondo Beach, and Hermosa Beach.
- Combination residential and rental properties
Duplexes, triplexes, and quadplexes make excellent investments, as they can be used as your residence and as income properties. You can choose to live in one unit and rent out the rest.
If you’re buying a luxury property, consider upscale homes and estates with a guest house that you can rent out.
If you believe you have what it takes to succeed in property flipping, you’ll find fixer-uppers in the area with great potential. Many homes in the South Bay communities were constructed in the 1950s and 1960s, and may now be good candidates for home flipping. Investing in fixer-uppers can be very profitable in these waterfront communities where home values tend to rise consistently.
- Financial leverage – In purchasing real estate, you can pay a small portion of the property’s value in cash and obtain a mortgage for the balance. As the property appreciates in value and/or generates rental income, you get a good return on your investment
- Regular income – After expenses, any leftover amount from monthly rental fees is money in your pocket
- It pays for itself – The income you get from rentals can be used to pay your monthly mortgage amortizations
- Tax write-offs – Rental property owners are entitled to a number of tax deductions on expenses related to running the property
- Depreciation – Even as your income property appreciates in value, you can depreciate the price you paid for it and write off the depreciation amount as an expense in your tax declarations
Advantages of income properties
Investing in income properties has many benefits:
Investing in real estate can be highly profitable, but it’s important to find the right property to invest in. Be guided by the experts at Jack at RE/MAX Estate Properties. Call 310-346-0391 today or email firstname.lastname@example.org.
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