Author Topic: Investment Property: Help  (Read 876 times)

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Offline the.irvine

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Investment Property: Help
« on: July 09, 2019, 08:44:46 PM »
Is this a good time to buy an investment property, I’m open go anywhere in California or elsewhere, would definitely prefer OC, SOCAL and/or NOCAL. Budget close to 600-700K

Basically, I need some help. If you guys can recommend any good realtor that would be awesome too.

Thank you.

Offline USCTrojanCPA

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Re: Investment Property: Help
« Reply #1 on: July 10, 2019, 01:23:18 AM »
Is this a good time to buy an investment property, I’m open go anywhere in California or elsewhere, would definitely prefer OC, SOCAL and/or NOCAL. Budget close to 600-700K

Basically, I need some help. If you guys can recommend any good realtor that would be awesome too.

Thank you.

If it is your first rental property then I would recommend buying something within a short drive so that way you do not have to pay a property manager to manage the property.  Also, I recommend buying a 3+ bedroom property near job centers and in B or higher rated school areas so that it is not competing against apartment units and is perfect for a move-up renter and a move-up buyer which will result in more stable rental and resale demand.  My step dad also give me some very good advise on selecting an investment property....never buy a rental property if you aren't willing to move into it if worse comes to worse.  I have several rentals so I'm happy to share any other information with you if you are curious to hear.
Martin Mania, CPA
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CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline momopi

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Re: Investment Property: Help
« Reply #2 on: July 11, 2019, 09:31:44 AM »
Is this a good time to buy an investment property, I’m open go anywhere in California or elsewhere, would definitely prefer OC, SOCAL and/or NOCAL. Budget close to 600-700K

Basically, I need some help. If you guys can recommend any good realtor that would be awesome too.

Thank you.


What are the reasons why you are looking to purchase the investment property now at your specified price range?

Offline OC_relocation

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Re: Investment Property: Help
« Reply #3 on: July 11, 2019, 01:40:28 PM »
because i have saved enough for down payment. lols

Offline OC_relocation

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Re: Investment Property: Help
« Reply #4 on: July 11, 2019, 01:41:44 PM »
I have already invested in equity market, so want to diversify. I dont know what are other options. Saving rates are around 2%, which are not enough.

Offline momopi

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Re: Investment Property: Help
« Reply #5 on: July 11, 2019, 04:47:22 PM »

Since it's an investment, you need a good reason to get in, and an exit plan.

Offline Dr. CA Real Estate

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Re: Investment Property: Help
« Reply #6 on: November 08, 2019, 10:38:49 AM »
My most profitable rental properties by far are in central CA. Particularly Clovis-Fresno. Much higher cap rates than anywhere else. Of course absolute income my highest is NorCal. Next place I get will be in SD to cover all major CA areas.
« Last Edit: November 08, 2019, 08:36:47 PM by Dr. CA Real Estate »
Kris Mendoza
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Offline eyephone

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Re: Investment Property: Help
« Reply #7 on: November 08, 2019, 10:44:50 AM »
This is why I have been saying cash flow is key in RE. (Yeah I know it’s basic/common knowledge)

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Offline momopi

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Re: Investment Property: Help
« Reply #8 on: November 08, 2019, 03:57:23 PM »

Generally speaking I recommend buying investment properties where the rental income is twice or better of the mortgage payment (P+I), excluding taxes, HOA, insurance, management fees, etc.  Premium areas will require some flexibility to this rule.

For example, if you purchase an investment property in South OC with 30% down and monthly payment (P+I) of $1,500, ideally you'd want the monthly rental income to be $3,000 or better.  But because South OC is premium-ish, I'd accept $2,800/month rental income.

You need the cash-flow to pay for the expenses (taxes, insurance, management fees, HOA fees, repairs, etc) and reserve fund, so when you're between tenants or selling the property, you won't be stressed out from lack of rental income during those months.  If you have a healthy reserve fund you can afford to be choosy with tenants or buyers -- less stress.  In contrast if you're cash flow negative, you'd be pressed to accept less desirable tenants or low ball offers while the property sits empty.

However, just because the numbers look great doesn't mean it's a good buy.  I have 3 friends who bought investment properties in Vegas and they all got burned one way or another.  Finding good property manager was a pain, finding good tenants was a pain, tenant leaves behind trail of destruction and trying to find a good contractor who won't bail halfway done with the job was a pain, etc. etc.

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