Home Buying in Fremont>Question Details

Bayareanew, Home Buyer in 94043

Looking for investment property in Bay area for positive cash flow and appreciation potential (Fremont, Dublin, all bay area)

Asked by Bayareanew, 94043 Sun Jan 20, 2013

We are also actively looking for properties in the bay area for up to $450k , hoping to close in the next couple of months. I know market is very competitive, so we would like to find an expert in this area to help us. Thanks.

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Here is a post that highlights current trends for investors in the Bay Area ...

Cash Offers Decrease in 2013 – Good News for Home Buyers
0 votes Thank Flag Link Fri Sep 20, 2013
Positive cash flow will be difficult in those areas even with a large down. 3 years ago you would have had a much better shot at positive cash flow (especially in lower income areas like Antioch, Bay Point, Pittsburg, etc... ) The problem with a really large down payment just to get "cash-flow" is the bigger the down the lower your return on investment. Make sure you are looking at ALL the expenses on a rental when you run the numbers. Mortgage + taxes + insurance + hoa if there is one + maintenance/vacancies/repairs. The last one is one that many investor forget to count. Remember when the property turns over to a new tenant you could have a month of vacancy + have to paint, clean and fix up a lot of items.
0 votes Thank Flag Link Thu Sep 19, 2013
We have 3 bedroom availble near Irvington high school. Asking 400K Cash
email ymastan@yahoo.com
0 votes Thank Flag Link Thu Sep 19, 2013
As mentioned below ... get in line. There are literally hundreds of buyers out there looking for the exact same thing - and inventory in at historic lows. Over 30% of current East Bay transactions are cash.

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 – buyers we’ve worked with that have approached the current market realistically and who’ve kept at it – have all ended up with a home.
0 votes Thank Flag Link Mon Jan 28, 2013
This is way is best to sit down with a Realtor and discuss your needs.

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.
0 votes Thank Flag Link Sun Jan 20, 2013
Your question still leaves many important points missing. It definitely would help you to sit with a local area expert because your question indicates too many fuzzy requirements.

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.
0 votes Thank Flag Link Sun Jan 20, 2013

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 property’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)
Commercial (Industrial)

Real Estate Investor Types:
Cash Flow Investors
Equity 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.

0 votes Thank Flag Link Sun Jan 20, 2013
Thanks for all the response. I guess i am looking for something more specific , so I can know what area to focus on. How much does school and commute matter in selecting an investment property? Is it better to get multiple cheaper properties, or buy in good area? If that is even an option. Given our price range, any advice is appreciated.
0 votes Thank Flag Link Sun Jan 20, 2013
There are many great investments available. You should discuss your needs and wants with a Realtor and have that person show you everything available.

Feel free to contact me, as well as the others, and see what we have to say.

thank you,

Brian Ripp, CRS, GRI
Broker, Notary
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
510-710-4905 cell
510-794-9006 wk
Realtor since 1985
DRE Lic. 00886348

DOI Lic. 0G82194
0 votes Thank Flag Link Sun Jan 20, 2013
Please contact Broker:
Mike Rowland at Windermere Rowland Realty
Offices in El Sobrante & Walnut Creek
0 votes Thank Flag Link Sun Jan 20, 2013
Hi Bayareanew:

Sounds like you would benefit from a customized Regional automated MLS Search Agent.

If you agreed I can get you started today.

“MLS Data Accuracy – Where to search if you’re “without Realtor®”

0 votes Thank Flag Link Sun Jan 20, 2013
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