Nympoon, Home Buyer in San Leandro, CA

Hi, ALL, I am comparing San Leandro, Hayward, Union City, Castro Valley and Fremont for houses as investment income property

Asked by Nympoon, San Leandro, CA Tue Sep 11, 2012

Hi,

I am comparing San Leandro, Hayward, Union City, Castro Valley and Fremont for houses as investment income property assuming the areas of the houses etc are the same . Do you know in general which districts get the most highest investment yield/return and is more welcome by those tenants.

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Answers

3
Rental market in all the cities you have listed are good. It also depends on whether you are looking at Single Family homes or condos/townhouses since then you will have the HOA dues take away some of your ROI.

Castro Valley and Fremont are more desirable from an investment perspective since the schools are very good and you will be able to rent it easily. Plus when you want to sell the property, it will have more buyers and the appreciation will also be higher than the other cities. But then, keep in mind, you will be paying a higher price to begin with because of the demand in these 2 cities.

Meena Gujral
Help-U-Sell Achievers Realty
925-425-9491
0 votes Thank Flag Link Wed Sep 12, 2012
As Brian mentioned, there are many looking for rentals, but there are also MANY looking to buy homes to rent as well. This is currently pushing house prices UP. Additionally, the rates of return differ drastically from neighborhood to neighborhood and between the various types of properties available. Bottom line is this: unless you have a lot of cash to put down on a purchase, the rate of return on your investment (ROI) is going to be VERY low – perhaps even negative. As Brian suggested, you need to sit down with someone who understands how to compute ROI and CAP rates and look at the various options available. You may be surprised at the answers.
0 votes Thank Flag Link Wed Sep 12, 2012
I have sold homes in all those areas, and manage many in those areas also. All are different. I'd be happy to sit down with you and explain more in detail.

Fremont homes will rent for a higher amount, however they will also cost more money.
There are many people looking for housing from Fremont to San Leandro so you should have no problem renting. We would need numbers to help with your rate of return and monthly cash flow.

There are homes in the Hayward / San Leandro area for under $300K that are nice homes in nice areas, but the best you can do in Fremont might be under $400K.(if lucky)

Sit down with an agent to go over the numbers.

Brian
0 votes Thank Flag Link Tue Sep 11, 2012
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