Here is a post that may be helpful for you in understanding what is happening in the current market:
Tough Year Ahead: Top 10 Issues Facing Bay Area Buyers
The good news is this â€“ buyers weâ€™ve worked with that have approached the current market realistically and whoâ€™ve kept at it â€“ have all ended up with a home.
You can invest in two small condos or one larger home. Depending upon down payment, are you paying cash or 25% down?
We should look at good rental market areas. We run the numbers and see what is best for you.
1st off: "Looking for inv property.. for positive cash flow and appreciation..." Yes... you and everyone else. "Competitive" doesn't give it full justice - extremely competitive & mom n pops are now competing against much more organized, capitalized, and professional institutional outfits with tens or even hundreds of millions to deploy. How do you effectively compete?
2nd: Multiple "cheap" properties or "good" area? Depends. What is your management strategy? Are you willing to go "dog & gun" in the hood... or do you want an easier time in a higher-priced 'burb? And what is "cheap". Even in the most sketchy areas, properties are now fetching at least $100k+. Also what is your rehab or repair strategy? What do you know and can you handle rent control/tenant protection jurisdictions where many of the "cheap" properties may be?
These are just some of the things that need to be considered... and merely "dripping" MLS emails on you of active listings is of limited value.
If you're serious, I'm serious and let's schedule a meet.
I believe it makes sense to first confirm which type of Property you want to invest in; and then, what type of Investor you want to be.
Are you looking for a property that is listed below current market value to possibly improve and then sell/flip? Or, are you really looking at a property to hold long-term for its cash flow and where the incremental profit over the expenses each month eventually leads to a 100% payback of your investment while allowing the market increase the propertyâ€™s equity percentage and a future profit stream?
Perhaps neither of these I what you are looking for. Below is a list of common Investment/Investor types:
Real Estate Investment Types:
Residential (1-4 Family Homes & Condos/Coops)
Multi-Family Residential (Apartment Buildings)
Mixed-Use (combination of Residential & Commercial on in one building or permitted on one lot)
Commercial (Office Space/units)
Real Estate Investor Types:
Cash Flow Investors
Fix & Flippers
Perhaps a discussion with your tax advisor/CPA might help you decide?
Personally, my family has always invested in Residential property and was looking at post-carry-cost positive cash flow.
If in fact you can clearly identify a specific Investor type you are seeking your search will be less daunting as you develop specificity.
Feel free to contact me, as well as the others, and see what we have to say.
Brian Ripp, CRS, GRI
Check my web site: http://www.BrianRipp.com
Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp
About me: http://client.rw.imprev.net/81/281/11768/index.ipv
Realtor since 1985
DRE Lic. 00886348
DOI Lic. 0G82194
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