Financing in Citrus Heights>Question Details

Teresa, Home Buyer in Citrus Heights, CA

I want to invest in condo and rent them out, where is the best place to look for them?

Asked by Teresa, Citrus Heights, CA Sat May 31, 2008

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My intention is to purchase many houses. Each house after completion of the renovation and renting should produce a annual return of approximately 5% on the total investment.

A typical example would be a house (with 15-1800 square feet of heated and air-conditioned space) in a good Orlando Neighborhood. This house would conservatively rent for $1,300 a month or $15,600 a year. Cost of operation (management, Taxes, Vacancy, Insurance etc) would average approximately 45% of the gross rent. Therefore the house would net 55% or $8580 per year. If we are to acquire a 5% annual return this would require that the total investment in the house could be no more that $171,600. Assuming that all repairs, renovation and transaction soft cost would be $30,000, we then would pay up to $ 141,600 for the house.

We would like to start the program with a commitment from our investor for at least $300,000 or two houses to start. It is not our plan to purchase houses that are in need of major renovations, therefore we believe that the houses can be purchased quickly (before the market has a chance to rebound) and rented within a couple of months of purchase.

We expect that the holding period would be 2-4 years at which time substantial profits would be made upon sale. Our profit position would be subordinated to yours. By this I mean that you would get your investment back plus 5% per annum before we were to get our share of the profit. My company would provide Brokerage services at wholesale to the venture at 2% (buying and selling). Our company would be paid management fees , overhead and cost (out of the 45%) as incurred. The fees would be at market rate.

I hope this has answered your question. If you have specific questions or suggestions please advise at your earliest opportunity.

Thank You

Phil Cowherd
407 835 9858 office
407 835 9859 fax
407 718 5300 mobile
0 votes Thank Flag Link Mon Oct 27, 2008
My intention is to purchase many houses. Each house after completion of the renovation and renting should produce a annual return of approximately 5% on the total investment.

A typical example would be a house (with 15-1800 square feet of heated and air-conditioned space) in a good Orlando Neighborhood. This house would conservatively rent for $1,300 a month or $15,600 a year. Cost of operation (management, Taxes, Vacancy, Insurance etc) would average approximately 45% of the gross rent. Therefore the house would net 55% or $8580 per year. If we are to acquire a 5% annual return this would require that the total investment in the house could be no more that $171,600. Assuming that all repairs, renovation and transaction soft cost would be $30,000, we then would pay up to $ 141,600 for the house.

We would like to start the program with a commitment from our investor for at least $300,000 or two houses to start. It is not our plan to purchase houses that are in need of major renovations, therefore we believe that the houses can be purchased quickly (before the market has a chance to rebound) and rented within a couple of months of purchase.

We expect that the holding period would be 2-4 years at which time substantial profits would be made upon sale. Our profit position would be subordinated to yours. By this I mean that you would get your investment back plus 5% per annum before we were to get our share of the profit. My company would provide Brokerage services at wholesale to the venture at 2% (buying and selling). Our company would be paid management fees , overhead and cost (out of the 45%) as incurred. The fees would be at market rate.

I hope this has answered your question. If you have specific questions or suggestions please advise at your earliest opportunity.

Thank You

Phil Cowherd
407 835 9858 office
407 835 9859 fax
407 718 5300 mobile
0 votes Thank Flag Link Mon Oct 27, 2008
• Im Matias from GRUPO AHUARQ. We we specialize in the development of customizable construction investments and all related to the urban and rural property service.

Sea view lands make our products exclusive for the building market and as cosequence to that, benefits from 30% to 50% per year are nowadays atracting our investors.

Supported by the economical growth Argentina is coming through, and taking in account that USA’s and European crisis has not “touched” our country ( this is because for years to the present it’s been very difficult to get a mortgage, cash transactions in almost every case), this housing business is having not only more buyers than sellers (that keeps our building market moving towards the future) but also offers a low risk investment.

http://ahuarq.com/grupoahuarqi.pdf
http://ahuarq.com
matiasmarino@ahuarq.com
mobile phone 005492235213422
0 votes Thank Flag Link Wed Oct 1, 2008
Best Place is Dubai and Abu Dhabi, UAE. Contact me and I'll give you more information about projects. Here is my email: arastu.sharipov@damacgroup.com or mob.:+97150 189 59 21 Name: Arastu Sharipov; Company: Damac Properties Co. LLC.
0 votes Thank Flag Link Sun Jun 15, 2008
If you're not fixed on buying in Citrus Heights, the Woodside and Timberlake communities in the Arden area are surprisingly affordable, close to CSUS, have plenty of shopping (Arden Fair, Howe Ave, Fulton Ave) and dining nearby, and are convenient to public transit, US 50, and Business 80--all criteria I use when evaluating rental properties.

http://www.forsaleinarden.com/real_estate/arden_condos/

Rob McQuade, ABR, REALTOR® | McMartin Realty
Tel (916) 444-7577
Web Reference: http://www.robmcquade.com
0 votes Thank Flag Link Sat Jun 7, 2008
Under 100K, there are 57 condos listed in Foothill Farms and Citrus Heights on Greenholme, Palm, Madison, Greenback, Hillsdale, Walerga and similar areas around Citrus Heights and Foothill Farms.
23 of the listings are under $70,000. Six are $50,000 or less.
0 votes Thank Flag Link Tue Jun 3, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Hi Teresa: I assume you want those condos in Citrus Heights. I think the best complex for investment in Citrus Heights is Crosswoods. They are very well maintained, have a strong homeowners association and retain their value very well. Transportation is nearby as is major employment sectors.

Good Luck.
Web Reference: http://SoldByErin.net
0 votes Thank Flag Link Sat May 31, 2008
Hi Teresa,

The old saying goes , location, location, location. Try to get a condo where there are lot of jobs around, good transportation and the price point is not too high. Chances are the rent will not cover for the mortgage, depending on how much you will finance, but as always you will be building equity. Maybe REO properties could be an option for you, but again if the plan is for rental condo, location is a must. Good luck.
Leonardo
Web Reference: http://www.leonardoteam.com
0 votes Thank Flag Link Sat May 31, 2008
Depending on your preference you may also want to consider investment properties in other States. Look for areas with high tourism. You can charge seasonal rates during peak seasons which benefits the cash flow of the property.
0 votes Thank Flag Link Sat May 31, 2008
Look for areas with heavy service (hospitals?) and retail growth. The workers and staff will need places to live...and not everyone can afford to buy. Good luck! It's a great time to buy!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat May 31, 2008
The Hagley G…, Real Estate Pro in Pleasanton, CA
MVP'08
Contact
This depends on many factors. I would recommend that you work with a Realtor that can identify the Best Properties for you and help you find areas with Steady Rental Pool

If you would like more information please feel free to contact me
Kind Regards
Michael Barron
First Team Real Estate
(714) 552-6817
0 votes Thank Flag Link Sat May 31, 2008
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