Writetopanida, Home Buyer in Walnut Creek, CA

I would like to know about renting market in walnut creek. I am planing to buy a condo or townhome 1 or 2 bedroom and rent it out. Any advice.?

Asked by Writetopanida, Walnut Creek, CA Thu Jul 21, 2011

Any recommendation for the area that is not too expensive and high HOA. thanks

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6
Yes, I'm glad you asked this question because many people don't consider the condo route as a viable option for income stream. However, I work with clients who buy condos for that reason. I specialize in condos and townhouses in the WC and adjacent cities, condos4all.com. Things to look for: lower HOA fees around or less than $300, then just do the ROI math for the condo. Keep in mind some of the HOA fee you pay goes towards the upkeep of the exterior of the unit, the complex, the roof, the available amenities, etc. Condo living is a lifestyle any according to CCAR the month-over-month and year-over-year growth/appreciation has shown that condos have kept up the pace in appreciation along with homes. Keep in mind that condos provide a great living/lifestyle at the lower price point and as the price point for homes push upward, condos and townhouses present a viable option for 1st time buyers, singles above 55, buyer who only quality for conforming loan limit, etc. Yes, there are condos in the area for rental purposes, just visit http://www.condos4all.com
0 votes Thank Flag Link Fri Aug 9, 2013
Walnut Creek is a beautiful city and there is almost no area that is inferior. @Ron Thomas is giving you some great advice about leaning more towards a single family residence. The comments about HOA restrictions are absolutely valid. Also, a lot of HOA's are raising the monthly assessments becuase of the high percentage of foreclosures (and homeowners not paying their monthly assessments). And, HOA fees in Walnut Creek tend to be substantial.

For the record, I lived in Danville (15 miles south of Walnut Creek) until 11/08. Lived in a very nice condo association. Fees went from 197 in 2000 to over 400 in 2008...and there was talk of a 15K to 20K assessment for roofing. At that point the assessments were just getting to be too much to justify.

I know agents in the area who can help you crunch numbers to see which property or type can make the most sense for you. I have run numbers for areas in San Diego County (where I now live) and investment property in the 400 to 450 range will easily have a positive cash flow on a rental basis. I think it would be much the same in Contra Costa County.
0 votes Thank Flag Link Mon Aug 1, 2011
Depending on what you buy, HOA's have restrictions on the number of rental units an association will allow and the type of financing as well. There are great resources to show what potential rents you could get on the property. It all really depends on your budget and time frame.

Bryce
0 votes Thank Flag Link Mon Aug 1, 2011
I know a great agent that works in that area. If you would like, I could shoot you the contact information, and you could have all these kind of questions answered. Have a great day!

-Rob
0 votes Thank Flag Link Thu Jul 21, 2011
There are a lot of ex-homeowners out there right now; and probably more in the near future.
This is like a "baby-boom" for Landlords.

Figure that these people probably do not want to move from a 4 bedroom, 2500 sqft house to a 2 bedroom Condo.
My suggestion would be to look for 3 & 4 bedroom houses and not in crummy neighborhoods.
This is probably a good target client/tenant.

Good luck and may God bless
0 votes Thank Flag Link Thu Jul 21, 2011
Panida,

Unfortunately you are about 10 years too late. In today's environment many HOA's have put in place rental restrictions that the banks and laws now support. With the glut of investors picking up condo's in the bubble era many associations have lists of people wanting to turn their properties into rentals.
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Thu Jul 21, 2011
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