For Rent in San Ramon>Question Details

SP, Home Buyer in San Ramon, CA

Looking to buy a rental property in San Ramon.

Asked by SP, San Ramon, CA Fri Jun 27, 2014

Is it better to invest in a townhome or SHR? How is the rental market? Is it easy to find property managers in San Ramon area?

Help the community by answering this question:


I would run numbers based on both options. A townhome is more affordable to obtain for one. You could possible purchase 2 townhomes for the price of 1 SFR in San Ramon. The main difference which will effect your Net would be HOA fees.

Bottom line is a townhome for $400,000 would be easy to rent and possibly end in a positive cash flow situation. Also there's a higher demand for renting Townhomes and Condos than a SFR. Rental market has been extremely demanding the past few years and there has been a dramatic increase in rent rates. If I was investing at the moment I would pick up a few affordable townhomes and get solid renters in place. Easier maintenance in between tenants, much easier to rent out and manage yourself versus paying 10% to a property manager.

I manage 15 Properties in Arizona and it's a very simple thing for you to accomplish with the resources they offer on the internet these days. This way you can cut out some of the costs and put that money back in your pockets.

Go With A Townhome/Condo!
1 vote Thank Flag Link Thu Jul 10, 2014
What is your budget? That will determine whether you'll be purchasing a single family home or a townhome. If you have the budget for both then I would suggest working with a local realtor and have her/him run the comps for single family vs townhome. Typically a single family will appreciate more than a townhome and when the housing market is going down will sustain better than a townhome. However, a townhome, depending upon how much the HOA is, may generate better cash flow.

Good luck,

Susie Kay
United Real Estate
0 votes Thank Flag Link Fri Aug 1, 2014
The rental market in San Ramon is extremely competitive! There is definitely a shortage of inventory at this time. I would say that a single family home would be the best investment, as town homes generally come with an HOA fee.

Best Wishes,
Cheryl Keden
Realtor, J. Rockcliff Realtors
Cal BRE # 01884266
Direct: (925) 705-5315
0 votes Thank Flag Link Wed Jul 23, 2014
Long term, SFR (single family residences) seem to appreciate more. You have SHR on the question so hopefully I am addressing it correctly thinking you meant SFR. There are other factors though. Houses often have more maintenance issues then townhouses and condos. The offset is the HOA fees for townhouses and condos, they eat into your cash flow.
The first step is usually looking at your price range, and cash to put down. The recent increases in values now requires a larger cash investment to break even or run a positive.
We have helped several investors recently on rental purchases, most buying in San Ramon and Dublin. We also handle the property management side, rates from $95 per month to $175 depending on the rent amount.
Hope that helps a little.

Glenn Mendell
Fox Real Estate
4115 Blackhawk Plaza Circle, Suite 100
Danville, CA 94506 (925) 735-7555
0 votes Thank Flag Link Mon Jun 30, 2014
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