Lisa, Home Buyer in Fremont, CA

Please recommend the cities for Investment property in Contra Costa

Asked by Lisa, Fremont, CA Sun Feb 3, 2013

I see the housing price in Contra Costa such as Concord, Pittsburg, Richmond, San Pablo, Bay Point, Pinole is relative lower relative to renting rate. But I heard the crime rate is higher. Could anyone give me some suggestions about which cities to buy? I hope the range of the house price could be between 150k to 350k.

And is the investment in Constra Costa a good idea?

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2
Returns are good place to start the other question to ask is what is your investment objective and timeframe? Cash flow? Total return? Flip? Long term rental.

An answer requires a knowledge of your cash position as well. Owning investment property is a commitment of cash and not as liquid as other formsof investment. The money will be tied up and if that money is needed in the intermediate term commissions and selling expenses are return killers.

Today it was announced that one third of our market is cash buyers looking to put cash in places that earn better returns than the one percent offered by the banks. Got Cash?
0 votes Thank Flag Link Fri Feb 8, 2013
Hi Lisa,
Investing in real estate all depends on what kind of return you are expecting. For example, the money you would spend to invest in real estate is getting what interest and return elsewhere?

As far as investing in Contra Costa, generally the cities/areas that have good school districts, close to transportation and close to work are both more expensive, but get higher rental rates. For example, cities like Alamo, Danville, Walnut Creek, Lafayette, Moraga and Orinda all have great school districts, in relatively safe/low crime environments and usually yield one of the highest rental rates in the area. That being said, based on your price threshold for investment, you would be looking at buying a condo/townhome in those particular areas. Therefore, you have to factor in the added expense of monthly HOA dues to your bottomline. This isn't necessarily a bad thing, as a lot of HOA's cover some general maintenance and other amenities that you might not have when owning a single family residence...

I suggest that you definitely cross reference all your searches with the crime statistics for the area. Also, when looking at condos/townhomes, make sure the local HOA's are not at their rental cap (meaning they will not allow for any more non-occupant owners).

I hope that helps, but let me know if you have any other questions, comments or concerns.

Thanks,
Brian

Brian Rochford, Realtor
Tom Rochford Real Estate Co.
(925) 285-0439
0 votes Thank Flag Link Mon Feb 4, 2013
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