buylowsellhigh_IHB
New member
I'm exploring some possibilities outside orange county as a good potential for investment... Seems that some of the newer <15yrs homes are running around the 250k mark for around 2000 sqft... These typically rent for about 1700-1800 a month.
I understand that mortgages need a sizable down payment to go thru. Making this as objective as possible, from a cash flow perspective, interest only + property tax on a $250k home, if set at 7% comes out to $1450 per month (with the appropriate down payment figured in, its probably 1100ish)..
With rent being in the neighborhood of $1700-1800, the numbers sound pretty enticing. I'm thinking that $50k can be put down for the investment property, then using the rent income to rent something in Irvine.
One of my relatives have an investment property over in riverside. Aside from taking a huge bath on the home's value, the rent prices seem to be holding steady. And if another property with similar specs was purchased, it feels like a good move.
And with this business idea, I was wondering if anyone has advice or insight, on socioeconomic factors that might not be very obvious. Assuming that the neighborhood/school area is decent, seems like it would work. Oh by the way, how do we calculate rental parity again? I have a hard time searching for this number.
I understand that mortgages need a sizable down payment to go thru. Making this as objective as possible, from a cash flow perspective, interest only + property tax on a $250k home, if set at 7% comes out to $1450 per month (with the appropriate down payment figured in, its probably 1100ish)..
With rent being in the neighborhood of $1700-1800, the numbers sound pretty enticing. I'm thinking that $50k can be put down for the investment property, then using the rent income to rent something in Irvine.
One of my relatives have an investment property over in riverside. Aside from taking a huge bath on the home's value, the rent prices seem to be holding steady. And if another property with similar specs was purchased, it feels like a good move.
And with this business idea, I was wondering if anyone has advice or insight, on socioeconomic factors that might not be very obvious. Assuming that the neighborhood/school area is decent, seems like it would work. Oh by the way, how do we calculate rental parity again? I have a hard time searching for this number.