Home Buying in San Jose>Question Details

Chloe, Home Buyer in San Jose, CA

why there are so many 4-plex for sale? The rental incomes are enough to cover mortgage.

Asked by Chloe, San Jose, CA Fri Jun 26, 2009

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That is a very astute observation you have made! There are indeed, an abundance of 2-4 unit multifamily properties on the market in Silicon Valley as well as other areas. They do not seem to command the same multiple offers that SFR do when they are priced low. Part of the reason is that 2-4 unit properties seem to be congregated in one area thereby leading to an abundace of rental units versus owner occupied units.
However, if you look around the better areas of Mt View, Cupertino, Sunnyvale, Santa Clara, and even West San Jose you will discover many neighborhoods with these units that are very well maintained.

I have recommended for many years that first time and other younger buyers as well as aging buyers consider buying 2-4 units as their primary home. That will allow their tenants to pay a sizable portion of their mortgage payment and even in some cases paying all of their payment allowing the owner to live almost free! That is a wise move. I know some families that started out that way years ago and are now living with very large monthly incomes from their long term purchases of small income properties.

My company specializes in investment property of all types especially foreclosures and other distressed properties. Please be aware that financing a 2-4 unit property is the same as financing a single family home. Above 4 units becomes a commercial property. Please contact me if I can be of service to you.
0 votes Thank Flag Link Sun Jul 5, 2009
In San Jose inventories of single family homes, townhomes, and multi families all peaked around July 2008 and have come down some from there. However, they are still higher than typical which implies its still a buyers market. Its easier these day to qualify for a single family loan and thats where the best rates are and credits back (Ie $8000 first time buyers credit or California new home credit) Rents in some areas have come down too. People have paniced and may be holding off on further purchases to keep their current boats afloat. This creates the perfect opportunity for buyers with all cash or decent downs to negotiate great deals and lock in low rates long term. Best of luck in your search. Don't hesitate to contact me if I can get you more specific info or arrange any showings.

Glen Mitchell
Web Reference: http://www.maui4rent.com
0 votes Thank Flag Link Mon Jun 29, 2009
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