Home Buying in Folsom>Question Details

farhad.billi…, Home Buyer in Sacramento, CA

Folsom / Roseville - condo or single family homes?

Asked by farhad.billimoria, Sacramento, CA Sat Jan 5, 2013

Hi - we are a young family (no kids). We currently rent in Sacramento and and are looking to buy a property in Folsom or Rosevile (or other safe family friendly communities). However, we want a place that has gives us some flexibility to rent out or resell if we have to move cities for work. Our budget is $300-400k.

We cannot decide between an condo or a single family home.
1) Is there an active rental market for single-family homes in Folsom / Roseville? 2) Are there many condo's for sale in those areas?

Any help would be greatly appreciated.

Thank you.

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Answers

9
Farhad - Single family homes appreciate faster than condos and have better resell value. Call me if you have any questions 916 7753070.
0 votes Thank Flag Link Sun Jul 21, 2013
Farhad - based on your question, it would appear that you're focusing more on the post resale/rental aspects to a new residence more so than your immediate family needs for this home (as Sue Archer mentioned)....for this reason I suggest flipping your thinking around, it really should be all about what YOU want for your family...besides, most homes and areas within both Roseville and Folsom are extremely desireable, you won't have issues with converting your home to a rental down the road (especially for a SFR home)...

Your price range, in most cases, should allow you to find a suitable property in either area, but unless you've started making offers, you won't know how difficult it is in getting into contract currently...

For this reason, if you don't already have a motivated agent you're working with, I would suggest interviewing some of the agents on Trulia and get going! Home prices are now marching upwards, and I don't expect mortgage rates to stay at all-time lows for too much longer...

Good luck to you and best wishes, Jeff M
0 votes Thank Flag Link Sat Jan 12, 2013
Looks like you have plenty of responses on your question. For $300-400K, you can get alot of home in either of the two locations you mention.

Any of the realtors can demonstrate, by doing a search in the Roseville or Folsom areas, a number of properties that would be exciting to consider. As someone else has mentioned, the homes go into contract very quickly so you need to be an EDUCATED buyer to make sure the home will meet your needs for now, and then should you decide to move. (an exit strategy)

To answer your specific questions- there is an active rental market, there is also an extremely active purchase market for both condos or single famly homes. But I'd like you to consider some other factors- buying a home for $3-400K that is somewhere that you want to live in and enjoy, may not be a good property to convert to a rental.

I think I would suggest you focus on finding a home that meets your living arrangements for yourselves first, and secondarily consider it for a possible rental after. But that still includes resale value. Condos and single family homes run with a slightly different market on appreciation. I buy rentals for durability more than comfort as I would select my own residence.

I believe it's a much longer discussion than can be handled here. Why don't you contact a number of realtors and ask them to explain them to you? First, competing to buy a home in today's market is not as easy as you might expect. There is low inventory and many buyers. Get with someone who can help you compete successfully to buy the home you select. Second, purchasing with a plan to convert to a rental requires understanding all of the nuances of renting a home out. It doesn't matter whether it's a condo or single family home. Those are areas of discussion much longer than responding here.

Sorry to not respond with 'YES YOU CAN' because you can do alot of things with $3-400K in this market, but it should be whatever makes the most sense for you.
0 votes Thank Flag Link Tue Jan 8, 2013
Since you have been renting, chances are your landlord has been caring for the exterior and yard. Buying a single family home comes with maintenance issues that may need to be budgeted. A roof repair, plumbing or electrical issues can be expensive. When you purchase, you should always get a home inspection so you know if there is any deferred maintenance or serious issues needing immediate care.

Condos are also subject to maintenance issues. Although you may pay home owner association dues, these dues will not cover interior electrical or plumbing issues. Also many home owner associations will not repair decks that are attached to your individual condo or townhome.

When you are ready to sell you'll become aware that there are more buyers looking for single family homes than condos. Take that into consideration when you decide where to purchase.
Properties in both Folsom and Roseville rent quickly if priced correctly. Single family homes will rent for more but as an owner, consider paying for landscape maintenance. Your personal responsibilities will be less if you are renting out a condo. Your home owner association dues pay for exterior maintenance. Hiring a landscaper is a personal choice and may cost less than association dues.

Currently, homes in the area are selling quickly. If you are looking to move any time after April or May, it's a good time to start looking at the area. Properties are selling with multiple offers. Be sure to be preapproved for your purchase before establishing a relationship with a realtor in the area. When it comes time to purchase, be sure to give your favorite realtor the opportunity to represent you. Realtors will work hard for you if they know you will be a loyal buyer. Good luck with your search!
0 votes Thank Flag Link Mon Jan 7, 2013
I recommend single family homes as it can be less risky. The condo market has suffered in this economic downturn. Some sellers have had a tough time selling as they could only sell to owner occupied or cash buyers. 1. Lenders only would lend if there was a certain percentage of owner occupied. 2. There were litigation issues that prevented lending 3. Many did not want to invest in a monthly HOA fee. If you owned a condo and had to for some reason sell it, you may also experience a smaller market to sell to..


Feel free to contact me with any additional questions.

Sincerely,

Michelle Thompson 916-804-2981
Lyon Real Estate El Dorado Hills
Top Producer
0 votes Thank Flag Link Mon Jan 7, 2013
-If you can afford a single family home, yes you can at your price point, I would recommend it. HOA's can be a hassle. I would not recommend an HOA for a first time home buyer. The fees can increase yearly. Feel free to contact me me if you need assistance with your purchase.
0 votes Thank Flag Link Sun Jan 6, 2013
Both Folsom and Roseville are highly desirable areas to live. Thus, there s high demand to both purchase and rent in these areas. With your stated price range you'll be able to purchase a very nice condo or a single family home with roughly 2000sf or less. Both these property types lend themselves to the types of places people like to rent.

What would be good for you to think about is...
1. Is monthly cash in pocket or long term equity more important to you in a rental?
2. Are you willing to pay home owners association (HOA) fees monthly?

A condo might (and that's a maybe) gain you more cash in pocket as a rental, but historically single family homes gain in equity at a higher rate than condos. HOAs aren't necessarily a bad thing, but they do cut into your rental profit and can go up over time.

And lastly, you asked if there are many condos for sale right now. Yes, there are plenty of condos for sale. Though, in today's market both homes and condos are going under contract within a matter of days.

If you have further questions, I'd love to help. Happy house hunting!

Morgan Larson
916-241-8788
Morgan@morganlarson.com
0 votes Thank Flag Link Sun Jan 6, 2013
Yes!

Folsom and Roseville both are great places to purchase both for Condos and Rentals.

In your budget of 300-400k you will be able to find a nice home or condo, that could give you a return in the future.

You really can't go wrong in most of Folsom or Roseville, and talking with an agent that really know those areas well can help ensure you are purchasing with the right intentions for your future.


Jodi Snyder
Keller Williams Realty
http://www.DreamTeamRES.com
916-708-8454
0 votes Thank Flag Link Sun Jan 6, 2013
Hello,

Thanks for your question!

You are in a great position to rent these days. The damaged economy has caused a sharp increase in rental demand. Rents are starting to rise mainly from the increase in rent demand. This is good for landlords.

Folsom is a great area. It has good schools and the surrounding communities are established as well. The shopping center at Palladium is an attractive center for buyers and renters.

Roseville is a fantastic community as well. Roseville has great schools and is home to the Galleria/Fountains Shopping area and many other amenities make it a hotspot of buyers and renters.

Both communities are great to purchase a condo or single family home and both will hold their values.

For more information, please feel free to contact me at (916) 295-0071.

Have a great weekend.

Ahmad Zeki, J.D.
Broker/Realtor
Web Reference: http://www.ZekiHomes.com
0 votes Thank Flag Link Sat Jan 5, 2013
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