Home Buying in California>Question Details

Big Rob, Home Buyer in California

What is a good city in California to buy a rental apartment/condo?

Asked by Big Rob, California Sun Nov 13, 2011

Looking at buying a condo / apartment if the rent could provide a reasonable cash flow after expenses. What city can command a high monthly rent relative to the purchase price of the condo / apartment?
Thanks,
Rob

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6
San Diego (Ameria's Finest City), is presently one of the best places to invest in RE in the country. You can't beat the climate, the people or the values anywhere. Please take a few moments to preview our very user freindly website below and feel free to call me anytime at 760 815-6977 or email me at surferjohn@cox.net.
0 votes Thank Flag Link Tue Nov 15, 2011
Hi Big Rob,
I would definitely say Oceanside! The prices are relatively low here, you are next to the beach, 30 minutes from downtown San Diego, right next to the Marine Base.... all of which provide lots of rental demand. Feel free to contact me to discuss further.

Thanks!
Sinead McAllister
858-205-5215
brokermcallister@gmail.com
0 votes Thank Flag Link Mon Nov 14, 2011
If you are open to investing your money outside of California, can I suggest the Dallas, TX area? The Texas economy and job market is one of the strongest (if not the strongest) in the US and you can find some great investment properites here with a minimum 10% return on investment and some over 20%. This can be condos, apartments, duplexes, or single family residences.

If you would like more information on investing in the Dallas, TX area, feel free to contact me.

Brian Rayl
Keller Williams Elite - Dallas, TX
972-949-4222
Brian@Rayl-Estate.com
0 votes Thank Flag Link Sun Nov 13, 2011
I would strongly recommend Coronado! Great city, wonderful beach community! Give me a call! I would be more than happy to show you some of properties available on the island! (619) 208-9615
-Debby
0 votes Thank Flag Link Sun Nov 13, 2011
None.
Condos are not a good investment, unless they are on one of the finest beaches in the world or in one of the most sought-after business districts in the world.
California has neither of these, so if you're buying an investment property in California, buy a single family home or other type of property. But never buy a condo if you can help it.
Condos lose their value first and regain their value last compared to any other type of residential property.
Wherever you decide to invest, make sure there is land attached to the property. The land is where the value is.
0 votes Thank Flag Link Sun Nov 13, 2011
Big Rob,

There are investment opportunities throughout the state. For the first time in many years, it makes sense to invest in California real estate if you are looking for cashflow.

In Sonoma County we have some great cashflow opportunities. As a feeder county to Marin County, and San Francisco, but not as high priced as those areas, the cash on cash returns on rental properties can be very good. We are experiencing growth in medical and technology fields, with many young people relocating here. We are also a destination county, with our many wineries, vineyards and the ocean.

It really boils down to what you're looking for, and how are you paying? Most condo complexes will require cash,as they don't meet the criteria for a loan,ei; Owner Occ vs Tenant ratio, One entity owns more than 10%of the units, HOA is financially unstable(too many owners behind in dues) You will also need to add in the cost for HOA dues.

Many homes are now under $200,000 in the less desirable areas, but still will bring in $1,000 - $1100 for a 2/1. You can get a 3/2 or even a 4/2.5 for under $300,000 and easily rent it out for $1800-$2000 or more. ..making a house, in my opinion, a better option than a condo. ...but expect competition...and if not a cash buyer,expect to write a lot of offers until you get lucky and beat the cash buyers to the table.

For more information on the Sonoma County rental market, and investment opportunities,feel free to contact me. 707-799-3617 NoDumbQuestion@gmail.com

Good luck to you ~ Allison
0 votes Thank Flag Link Sun Nov 13, 2011
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