Tips for Purchasing Investment Santa Cruz Real Estate

Posted by Lauren Spencer on Friday, March 22nd, 2013 at 1:01am.

With the housing market still making a comeback and many people renting homes, now may be the right time to invest in Santa Cruz real estate as rental property. The additional income could make it a solid investment if you are looking for something long term. When looking for rental property, here are several factors to consider to ensure your investment is profitable.


If you plan to take out a mortgage to purchase the property, be sure to check your credit report through the three major credit bureaus and clean up any errors. If your score is low, you’ll need to work on improving your credit rating to get the best interest rate on your loan. In addition, consider that you may have periods without a tenant, so plan ahead to cover payments when that happens.


Find out if the house is near a school and affords easy access to major roads and stores. These features appeal to people with kids and those who commute. Stay away from neighborhoods in decline and those with high foreclosure rates — these factors will bring down the value of your investment.


From HOA dues to upkeep and maintenance of the premises, there are many expenses that come with owning Santa Cruz real estate for rent. Take into consideration these expenses, along with property taxes and insurance, when deciding whether to purchase rental property.

Rental Amount

Research the area to determine the cost of rent for similar Santa Cruz real estate listings. The amount you charge for rent should be comparable; adjust it based on upgrades or special amenities. Then add up all of your monthly expenses, including mortgage payments, insurance and a built-in maintenance plan, and compare the total to what you could feasibly charge for rent. If you’ll be covering all of your costs and making a little extra, then it might be worth the investment.

Purchasing rental property can be a rewarding way to invest your money for the long term. If you’re interested in learning more, please call me at 831.662.6522 or email me at for additional information.

For additional real estate information, please visit my home page at


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About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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