Home Buying in 75454>Question Details

Anna, Other/Just Looking in Fremont, CA

Is buying investment property in Melissa easy to rent and good for future appreciation? If the property is 1,798 sq. ft., 4 bedrooms and 2 baths,

Asked by Anna, Fremont, CA Fri Aug 12, 2011

sells it for $125K and leases $1,295 a good investment? Is the school good?

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6
For future appreciation, I recommend focusing more-so on areas with exemplary-rated and sought-after school districts.

A "good investment" would depend upon many things--especially the individual's specific goals.

Feel free to contact me If I can be of further assistance.

-Amy S Arey, Realtor
Halo Group Realty, LLC
214.901.1341-Cell
http://www.Aarey.HaloAgent.com
0 votes Thank Flag Link Mon Aug 11, 2014
Rental properties are increasing as investors are taking advantage of the economic realities of life in the 21st century. There are many great buys available. It is important to know your numbers. It is easy to determine what rents can be charged. The real challenge is working your financing to best advantage. An all cash buyer has lots more flexibility to generate cash flow. Return on investment is important so factoring in the opportunity costs of another investment is essential.
Both Melissa and Anna are seeing an influx of people as jobs are being created in the DFW Metroplex. Currently there are lots more buyers than sellers. That can change of course. There is always going to be a rental market for homes that are well kept and updated. A good property manager is imperative.
0 votes Thank Flag Link Mon Jun 2, 2014
Anna,
Rentals in Melissa are a good investment. The rents in that area have gone up and I have a 2219 SF home that is renting for 1450.00 a month.
Let me know if you need help finding one Jerry 214-801-1393
0 votes Thank Flag Link Mon Aug 6, 2012
Great information and advice by my colleagues below. Would add that as of this writing there are 6 homes listed for rent in the MLS system in Melissa. All of these properties are 3 bedroom/2 bath homes which would make a 4 bedroom a little more competitive. Half (three) of the properties have only been available for less than 1 week, 2 for a little over 1 month, and one for 3 months.

Since you are out of state, property management is going to be important for both getting your property leased and on-going management. Calculating those and other costs as outlined by Brian will give you good insight as to whether this is a good investment for you. I lived in California for a while as well and had a rental property near Melissa that turned out to be a good investment, and, good property management is critical when you are out of state!

Wishing you the best in your investments.

Sandy Setliff
JP and Associates
214 620 1615
0 votes Thank Flag Link Mon Apr 30, 2012
Anna,

The schools are exemplary rated in Melissa and have low student to teacher ratios. I have sold several investors in Melissa over the years and they rented the homes out within a week of closing and have kept them occupied.

Thanks,
Lara O'Keefe
Standard Pacific Homes
972.837.2712
0 votes Thank Flag Link Sun Apr 29, 2012
Hi Anna,

Real Estate investment all depends on your situation.

If you are purchasing a home for $125k and leasing it for $1295, then this is just barely a 10% return on your investment without considering any expenses.

If you are financing the home, then you have to take into account your additional mortgage costs. Keep in mind taxes, insurance, etc.
If your tenant moves out, how quickly can you get another one in? Do you need to account for vacancy in your figures?
Are you going to be managing the property yourself or are you going to hire a licensed property manager to handle that aspect for you? That is an additional cost.

Again, all of this depends on your particular circumstances, risk tollerance, etc.

I have helped several investors who are looking to purchase rental properties as well as flip properties in the Dallas area and have written several articles about investing on my website at http://BrianRayl.com.
I would be happy to discuss various aspects of real estate investment with you. Give me a call or shoot me an email. In fact, I have 2 great properties that I am listing that would yield nearly 20% on investment, and you can buy both of them for the same $125k if you are interested.


It's more than real estate. It's RAYL-Estate!

Brian Rayl
Keller Williams Elite
972-949-4222
Brian@Rayl-Estate.com
http://BrianRayl.com
0 votes Thank Flag Link Thu Aug 25, 2011
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