All good answers with lots to consider. Sharpen your pencil and watch the numbers, they don't lie. Let me know if you want more specifics.

Cduncan,

I agree with everything the Brentwood agent's say, though I would challenge your underlying assumptions. Many people buy investment properties, like they buy homes they would live in. Fine for pride of ownerhsip, not so good for the risk/return trade off. For years I have worked with investors everytime, the first question I ask them is. "How are you going to make money?" The algebra never lies. Get together with your realtor and an excel spreadsheet and scan the MLS comparing like properties. What it will show is, the cash flow is very good right now in Brentwood, but its also good in Pittsburg, Concord, and Martinez. It will also show, while your money buys less home in the latter areas and older but a check of the algebra paints a different picture.

I reiterate the agents below have explained the risks in a very nice way. Carefully re-read their posts and think it through.

On my website I have a page called the ABC's of Real Estate investing and I recommend you look at it.

There are very good reasons for buying a rental in Brentwood, but you must know what those reasons are (Specialty rental retirement, vacation, boating, golf for example). Here are some keys to help. 1) The home must be new and impeccably maintained. 2) An investor MUST get maximum square footage and/or permitted detached aupair unit with separate entrance. 3) Should not be on the fringe (where if you had to sell you would be competing head to head against new construction) 4) Being close to schools, transportation, or shopping helps.

If your agent won't help. I'll be glad to sit with you and show you how the numbers work at your price point.

Dear Cduncan,
Great Question! The answer depends upon your personal financial position. Many people need a negative cash flow property, so that is something to consider. There are also other possitives with buying in a upscale area one is the type of tenants you will have there, and also the wear and tear on your investment. I would highly recommend that you retain a Commercial Realtor who can put these variables on paper for you.

Good Morning CDuncan. I agree with the previous folks answer in regard to the positive cash flow. Now is a great time to invest, however I do see prices creeping up. I have lived in the Brentwood area since 1968 and my husband since 1951, so we are very familiar with Brentwood . Yes, there are good better and best neighborhoods in Brentwood and thank God we don't have any slums or ghetto areas. I would invest in a middle of the road type house, if you can pick it up for a good price as you will probably get more bang for your buck, however, there is a lot of competition. I talked with another agent the other day that had 36 offers. You just have to make sure you have an agent who is savy in this area. Oakley rents are pretty competitive with Brentwood, however when it comes to selling the house down the road, Oakley typically doesn't keep up with Brentwood. That being said, best of luck to you. Please visit our website at http://www.prurealty.com/parsonshometeam.com, for up to the minute listings, fed from the MLS. We can be reached by cell at 925 437-3927, if you have further questions or email at ppars2001@sbcglobal.net

Brentwood is a great place to invest. However, I must agree with the other post. Focus on cash flow. There are a number of variables. Oakley provides some excellent investment opportunities.

On my Blog I have completed 13 parts of an investor series. I know it sounds long but it is a quick read; especially considering the money you will invest. It talks about cash flow and provides tools for looking at cash flow. You can download an investment calculator too.

If you have any questions I will be happy to answer them. I can also send you properties to look at on line.

Cduncan, I'd be happy to answer your questions, as I've owned and managed property in Brentwood since 2001. My perspective is that in today's market, buying a rental in Brentwood should give you positive cash flow, period. If you're purchasing a property as a long-term investment in hopes of gaining equity when the market comes back, I do not recommend a negative cash flow property...after you calculate the cumulative annual losses times a wild guess on how many years it will take before the market turns around, it may not be worth your while. I recommend getting an immediate monthly return on your investment because up to about 10 years ago, it wasn't possible in Brentwood...now it is.

Besides your monthly mortgage payment, there are HOA dues (if applicable), property taxes that likely include the extra Brentwood assessments, property management fees if you are going to hire a professional and even the cost of an annual business license that the city now requires for residential landlords.

Furthermore, you not only have to consider the normal vacancy factor, but there is an influx of unscrupulous renters that do nothing but move from rental to rental without paying anything but the move-in costs...then they just wait until the landlord gets tired of their excuses and decides to take them through the eviction process.

Regarding "neighborhoods you should avoid" my best advice is to drive through them yourself and you will be able to decide for yourself. Be aware of neighborhoods with a higher-than-normal amount of distressed properties (usually evidenced by dead front lawns!) because those neighborhoods also typically attract crime, vandalism and squatters.

West Brentwood is typically considered the most desirable place to live (Shadow Lakes, Deer Ridge, Apple Hill, Tuscany, etc.) but they also demand higher prices as well as higher rent. There are many other desirable neighborhoods in Brentwood, but just be sure to check out the school district first because that is extremely important with many potential tenants.

Personally, in this market I'm a fan of getting the highest cash flow on any investment, so I would recommend considering properties that have a separate rental unit in addition to the main single-family residence. If you'd like more information on these types of homes and their availability or have any further questions for me, please feel free to contact me directly...leilani at souza realty dot com.

If the purpose of your purchase is an investment, then an investment has to provide "positive" cashflow, else it is not a good purchase...regardless if the area is prestigious or not.

In regards to neighborhoods, are you buying to rent it or to live in it? If to rent, then what does it matter? Because you're not going to live there. I know of an investor who invest only in the USC neighborhood areas and this is a known ghetto community. The key to buying investement properties is positive cashflow and within 60 miles of where you're living. You need to visit and keep an eye your investments.

If you are going to live in the property, then the best way to find out if you should avoid a neighborhood or not is to personally visit it at different times in the day - morning, afternoon, evening, and weekends.