Risks and Rewards of Investing in Santa Rosa Real Estate - Article Banner


Real estate investors typically buy rental homes because they know there are huge opportunities for short-term income as well as long-term growth. They’re also willing to accept the risk that comes with investing in Santa Rosa real estate. 

Anywhere you invest is going to be risky and rewarding. In the stock market, you have unpredictable market trends and frequent highs and lows. Real estate, at least, delivers you a tangible asset. 

The Santa Rosa real estate market has its own unique trends and nuances. If you’d like to buy a rental property in Santa Rosa – congratulations. This is an excellent market for a lot of reasons. But, like any real estate market, it’s full of potential downsides. 

Santa Rosa’s Rental Market

Let’s talk about some of the rewards of investing in Santa Rosa first. The local economy is strong, and most of the tenant pool will be high earners. The tech industries, healthcare industries, and education industries are creating new job opportunities every quarter. There’s also a lot of tourism. 

Population is also high. While San Francisco has been losing residents since the pandemic began, the population in Santa Rosa has been steady and slowly rising. Census data for Santa Rosa shows that the city has grown every ten years. Current estimates show that the population has grown at a rate of about 4.4 percent since the previous census, with the city steadily nearing 200,000 residents.

This means there’s a great pool of tenants. Rents are high, and investors won’t have trouble attracting good residents to their rental homes.

Santa Rosa Home Values

The sales market is hard to follow lately. There have been unusual spikes and strengths, and we’re certainly dealing with a competitive market In Santa Rosa. Here, home values are high, and local real estate has been appreciating steadily over the last five years. So, investors need to know that there’s a risk they won’t earn a lot of appreciation right away, but if you’re willing to hold your investment property for the long term, you’ll find you own a property that’s worth significantly more than it was when you bought it. And, you’ll have enjoyed years of tenants paying down your mortgage and covering your property expenses. 

There’s a risk that you may be paying more than you want to for a home in the current market. But, that investment will begin making you money immediately. That’s where smart investors find the reward.

Buy the Right Santa Rosa Investment Property 

Look for a PropertyAnother risk in any real estate market is that you’re buying the wrong home. 

Remember that you’re not looking for a property that you’re going to occupy yourself. It doesn’t have to have a large master suite and granite counters. Know your market and your neighborhood. Tenants want a clean, functional property in a good neighborhood. That’s what you should be looking for; not the perfect home. 

Don’t try to navigate the local real estate market without professional help. We can help you find the right Santa Rosa investment property and walk you through the particulars. Our team can establish a projected rental value, estimate what kind of work will need to be done, and help you market and lease the home to great tenants. Please contact us at Prestige Real Estate & Property Management. We manage homes in Sonoma County, including Santa Rosa, Windsor, Sebastopol, Petaluma, and Rohnert Park.