General Area in San Jose>Question Details

JustSeller, Other/Just Looking in

Looking to buy investment property in bay area. What are the good areas for rental income? What are the absolute areas to avoid (i.e. gangs etc)?

Asked by JustSeller, Thu Jun 9, 2011

More parameters:
(a) First time investor
(b) Think MFH is the way to go, and see some in the sub 500K
(c) San Jose & Fremont (near BART) look good.
(d) Will probably hire property manager (~8%, I think)
(e) Not eligible for claiming passive investment losses.
(f) Looking to be at worst cash flow neutral, while building equity
(g) Excellent credit history
(h) Looking to avoid HOAs. Can wreak havoc on monthly budgets.

Looking for advice regarding:
(a) Areas to zoom in on. (Strong rental markets, low vacancy rates)
(b) Loan terms to expect
(c) General combinations to look for in MFH (i.e. 4 1B/1BA MFH vs 2 2BD/1BA) etc
(d) General rental rates in the area.

Help the community by answering this question:

Answers

2
Hari,

San Jose definitely has a strong rental market. It's identified as one of the few metropolitan areas in the entire US that will have >5% rental price growth in the next year.

You are asking all the right questions here. However instead of giving you pieces of information here, it will be more effective if we sit down together for a more in-depth discussion. We have worked with many first time investors. We give a crash course on real estate investment, lay out the entire process from financing to purchase to management, identify properties within the budget, do the analysis, complete the purchase and of course find the tenants and manage the properties.

You can email me and I can answer your questions listed here. Or if you need further assistance, I can certainly be of help.

Regards
1 vote Thank Flag Link Wed Jun 29, 2011
I'm a Realtor and Investor myself with over 7 rental properties. Rentals in the San Jose/Fremont area vary by neighborhood. A typical 3/2/2 goes for 1800 - 3500 in these ares. fThe more affluent areas can demand 5k or more for a rental as well. Silicon Valley is pricey in general but there are niche markets where there is excellent cash flow to be found. Contact me. I would suggest buying in the 95123, 95119 zip codes where cash flow can be realized.

Steven Gary
Realtor
DRE 01895061
408-644-3287
steve.gary@yahoo.com
0 votes Thank Flag Link Tue Jun 28, 2011
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