Home Buying in Palmdale>Question Details

shangshang222,  in California

Investment property in Palmdale

Asked by shangshang222, California Tue Oct 29, 2013

I am looking at the possibility of buying rental/investment property in Palmdale/Lancaster area. My concern is that the price has already gone up substantially in the past year. Also, I am concerned about the rental prospect of the area as I do not know whether the property can be easily rented out. I am looking at annual rental return of about 7% after all expenses (pay cash for property). Does anyone know if this Palmdale/Lancaster should be an area to look at? Thanks in advance.

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Have you considered financing for this property? There are some things to think about when buying an investment property. Well first off since this is an investment property and not your primary home, things will be treated differently when it comes to finances and rules. You can no longer qualify for any of the first-time buyer perks like grants or an FHA loan unless you actually plan to occupy this property. Otherwise, you will be expected to pay a higher down payment and interest rate if this is your second property. Either way, you should speak with a lender like myself that would be able to help you with your questions when it comes to financing. Well I hope this helps! If you have any other questions or if you would like a loan, feel free to contact me. Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Thu Feb 13, 2014
There is a property available right now in Lancaster built in 2007. Four bedrooms with tenant already in place with a return of 7.62%.
0 votes Thank Flag Link Tue Oct 29, 2013
You can buy 4 bd. homes in E. Lancaster build after 2005 for about $220,000-230,000. They currently rented for $1800. Minus property tax and renters insurance you should be able to clear 7-8% cash return. Plus these homes appreciate quite nicely. I have two similar properties which I bought in 2009 and they have double in the last four years. I am renting to Section 8 tenants, and it is much more convenient, since I receiving a check on the 1st of every month. Also these homes are just 7-8 years old and maintenance is inexpensive. Palmdale is more problematic, since city bought most of the distressed properties and sells directly to the low income families. Please contact me if you have more questions. 661-860-0023.
0 votes Thank Flag Link Tue Oct 29, 2013
The prices of 2009 are gone. The chances of your value appreciating 100% in the next 4 years is not a possibility, unless you buy a dirt cheap fixer. If you are looking to buy and hold you want to look at areas were people want to live and raise their families. Areas with good schools, convenient to shopping, and low crime rates.
Flag Mon Nov 25, 2013
Sure, a 7% rate is possible. We still have a good inventory of homes under $160k than can rent for $1,200/mo. or more with Sect. 8

Call me and I can send you a list.
0 votes Thank Flag Link Tue Oct 29, 2013
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