Hi Mrs Cothren,

If your thinking of a property here in Tracy or San Joaquin County I would suggest a property that was older lets says 80s . The fact is you will have better cash flow ROI, need less cash up front lower rent scale=easier to rent less turnover. I have access to professional investment property analysis databases ,I'm a Realtor with Keller Williams in Tracy .Here is an example that is a great candidate for rental investment:

2061 Village Dr
TRACY, CA

Type RSFR Bed 4 Bath 2.0 Units Bldgs Stories 1 Parking 2 Year Built 1985 Zoning resi Lot Sqft 5663 Bldg Sqft 1312
Price $159,999 Diamond in the rough! Needs TLC, great investment opportunity, plenty of potential. Perfect before and after home! Close to school and park. NO MELLO ROOS

Investment Summary
1 Year 2 Year 3 Year 4 Year 5 Year
Sale Value $159,999 $125,599 $98,595 $77,397 $60,757
Rents $22,200 $23,155 $24,150 $25,189 $26,272
Cashflow Before Taxes $4,939 $5,684 $6,460 $7,270 $8,115
Cash-on-Cash Return 15.43% 17.76% 20.19% 22.72% 25.36%
Capitalization Rate 9.47% 12.66% 16.92% 22.60% 30.18%


Al Mora
Keller Williams Realty Tracy
morahomegroup@kw.com http://www.morahomegroup.yourkwagent.com
1-866-985-7667

P.S
I can send you by email analysis of any property to see cash flow ROI scenarios.

Ligia,

Location, location, location............................consider an appealing vacation area with warm winter weather and a high demand for rental properties.

We would love to share some possible options.

Good luck,
The "Eckler Team"
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363

Hi Ligia,

The object to purchasing a rental property is to make money. You should look at the expenses involved, i.e. mortgage, taxes/insurance - and insurance will be higher because it will be non-owner occupied, maintenance costs through out the year i.e. dishwasher breaks down, garbabe disposal stops working etc. - you should have funds set aside to handle the unexpected - property management fees if you are not going to personally manage the property etc.

All things being equal, the newer home might have less maintenance issues.

Location will always have an impact on your rent value as you can own the largest home in the world and if it's in a bad neighborhood, you couldn't rent it at a profit. It's best if you can rent at a profit and enjoy the benefit of someone paying off your investment for you, the tax write-offs afforded you and hopefully property appreciation.