Home Buying in Los Altos>Question Details

rachelwenli, Home Buyer in Long Beach, CA

Buying a house as investment to live in now (in the next 1-3 years) and for future rental, managed by an agent?

Asked by rachelwenli, Long Beach, CA Fri Jan 25, 2013

Is it feasible to buy a home in Los Altos or other reasonably good neighborhoods around Long Beach, and then when we move away to another city or state (possibly in 1.5-3 years' time), to rent it out, and to hire an agent to take care of the house rental?

What is the typical rate to pay the agent?

What is the house/condo rental market like in Los Altos neighborhood or Long Beach areas?

Help the community by answering this question:

Answers

8
Josh Barnett’s answer
1. Yes

2. 10 to 15% will get you good managers.

3. Check out Trulia's rental page to get an average asking rent , link below.
http://www.trulia.com/for_rent/Los_Altos,CA/

Best of Luck
0 votes Thank Flag Link Sat Feb 16, 2013
Hello: As already stated the market for buying and renting in the Los Altos area of Long Beach is hot and you may also want to consider looking into the Plaza area and focus south of Wardlow. Now the key to any investor is the numbers and whether they make sense. So as an example let us use the following data: Home purchased for $425,000 with a 3.5% interest rate and the loan amortized over 30 years. Based on today's rents (i.e. $2,500 conservatively) for this area you, would have to put down a minimum of 18% just to break even when you take into consideration Mortgage Debt, Property Taxes, Insurance, Property Management Fees, Repairs/Maintenance cost and we must take into consideration a 5% vacancy factor. Any dollar amount over the $2,500 would be cash flow for you. Please not that once anyone begins to think about investing into real estate "YOU MUST" do your home work and work with the right people in order to succeed. Presently we are in the back side of the Buyers Phase I for today's market place based on data. Hope this helps you out and feel free to ask me for additional information about investing into real estate. I am here ready and willing to work for you if you are in need of a professional.
1 vote Thank Flag Link Fri Jan 25, 2013
By 18%, do you mean putting down at least 18% of down payment? Thank you for the details by the way!
Flag Fri Jan 25, 2013
Hi Rachel,

Yes, this is definitely feasible. I know many people who use agents to manage properties from out of state.

When you are purchasing a property, you do not have to pay for the agent fee, it is paid for by the seller. When you eventually decide to lease it out, you will typically have to pay 5-10% of the rental price for 12 months.

Please feel free to contact me if you have any questions regarding purchasing or leasing out a property. I would be happy to provide you with a list of properties currently for sale.

Best,

Jamie Tian
Rodeo Realty
(310) 717-1321
JamieTian@RodeoRE.com
DRE #01920120
Web Reference: http://www.JamieTian.com
0 votes Thank Flag Link Sat Feb 16, 2013
I have sold several homes in the Los Altos Area as well as other Long Beach neighborhoods and have been able to help my clients either just rent the place which I am happy to do, or if they want full on property management, I have them talk to the my property manager at L B Brokerage who has a long history of handling proeprty management. Typically if I am just going to rent the house, I charge 7% to handle interviewing the potential tenants and checking their background and doing all the paperwork. My past clients would be happy to be a source of referrals where I have rented properties for them. They know I am picky and my tenants typically stay for a long time. My longest tenant believe it or not is 20+ years in a condo in Downtown Long Beach. The rate for property management is typically 10%.

I have helped tenants find rentals as well and both in Long Beach and Orange County when you are renting a home often there is a waiting list of tenants wanting to rent. So getting your rent and a qualified tenant has not been difficult. There are more tenants now out there who have lost their homes and are looking to rent. Sometimes, that may be the only glitch in their credit. So my owners and I decide if it is the right fit for us.

I would be happy to answer any other questions, and would appreciate your consideration.

Regards,
Barbara Robbins-Olexa, Broker,
L B Brokerage
714-296-7270
bstrealtor@aol.com
http://www.barbararobbinsolexa.com
0 votes Thank Flag Link Fri Jan 25, 2013
Fantastic Question, since the market is still great with low interest rates. Yes, it is feasible, best bet is to call one of us agents and sit down and go over all the figures. Rental market varies... this is very general , but you should be able to get (depends on location and size and condition) 3bdrm 2bath approx. $2,600-$2,800 rent. To hire us to manage the property when you move out of town, it can range from 6% to 10% - I have even known to do just a flat rate. Make Sure The Realtors E & O insurance covers Management as well.

I hope this helps a little bit, very broad question so you are getting a very broad answer. If I can help and you need more specifics, please call.

Lesley Harris, Realtor
(562) 673-0943
Cal Tex Properties
LesleySells@gmail.com

DRE#01124037
0 votes Thank Flag Link Fri Jan 25, 2013
What you are asking is feasible. It would be best to sit down and review the numbers to make sure they will make sense for you now and as an investment later. There are a lot of variables, so it is hard to make specific comments without working through more details.

Let me know if you would like to meet and discuss.

Michael Magaw
310.259.6850
m@nhlbrokers.com
0 votes Thank Flag Link Fri Jan 25, 2013
Hi, yes you can certainly do this, management fees will vary based on the level of services provided. The rental market in East Long Beach is typically alway strong with quality rentals in high demand. I'd be happy to help answer all your questions so you can make the best decisions possible. Feel free to give me a call.

John Zimmerman - RE/MAX Real Estate Specialists 562-706-1406.

CA DRE LIC # 01052025
0 votes Thank Flag Link Fri Jan 25, 2013
The neighborhoods in East Long Beach is not as good as Los Altos or Belmont Heights/Belmont Shore. But you said the rental market is strong. Is it stronger than Los Altos area or other "better," more expensive neighborhoods?
Flag Fri Jan 25, 2013
Hi Rachel,

Yes, that's very feasible. You won't pay any commission as a buyer -- that's paid for by the seller. When you decide to rent it out, the typical fee for property management is 7 percent.

You'll want to consider potential rents when determining whether a particular property will make sense to convert to a rental property. We can help you compare sales prices as well as evaluate future rental potential.

Please feel free to call or email if you'd like to discuss your plans in more detail. I can be reached at 562-896-2456 or Info@ShowMeHome.com.

Shannon Jones
Keller Williams Realty
Web Reference: http://www.ShowMeHome.com
0 votes Thank Flag Link Fri Jan 25, 2013
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