I am interested in purchasing a 2-3 bedroom townhouse in the Sunnyvale area as an investment. Can I get a positive cash flow with a 20%?

Asked by Dawn Soderquist Okano, Honolulu, HI Sat Oct 29, 2011

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Marcy Moyer, Agent, San Ramon, CA
Sun Oct 30, 2011
BEST ANSWER
There is one community in Sunnyvale that may work. It is called Roundtree and you can get 2-3 bedrooms between 250K and 325K. Right now rents are high so that price should get you a little positive cash, although not much. the HOA fee is $370 a month which covers water and garbage and exterior. At this price it is cutting it close, but depending on the kind of loan it may work.
Marcy Moyer
DRE 01191194
Web Reference:  http://www.marcymoyer.com
0 votes
Tina Lam, Agent, San Jose, CA
Sun Oct 30, 2011
Dawn,

If you're looking to breakeven on a net cash flow basis, it's possible to do it in Sunnyvale with 20% down, but your choices are limited. For those properties, upside potential is definitely limited. If you want bet on appreciation, you'll need to budget for at least 30% down. HOA and property taxes have been going up while property prices headed down the last 4 years. Nearby cities offer different investment hurdles, some more favorable to a 20% down investment and some much less.
Web Reference:  http://www.archershomes.com
1 vote
Terry Bell, Agent, Santa Rosa, CA
Wed Dec 28, 2011
You might consider SFR homes up in the wine country north of the Bay Area, and avoid HOA dues! lots of good deals up here in Santa Rosa!
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Wed Dec 28, 2011
Hi Dawn:

Yes you should be just fine.

Rates are great, prices are down, rents keep going up in Sunnyvale 10% year over year.

Goodluck.
Perry
0 votes
Robert Lei, Agent, Cupertino, CA
Wed Nov 16, 2011
Nowadays with rents going up and mortgage rates and payments staying very low, it is possible.
But don't forget that the best thing about investing in real estate is that time works FOR you, not against you. As time goes by, rents go up, mortgage payments stay the same for 30 years, supply of land goes down, population goes up, demand goes up, real estate prices go up, resale value goes up, etc.

If you use a spreadsheet, you'll see that after a certain number of years (usually less than 10 years), the numbers drastically favor your real estate investment.
0 votes
Terri Vellios, Agent, Campbell, CA
Sun Oct 30, 2011
Greetings Dawn,

As in HI, Sunnyvale has different neighborhoods with different prices and that is reflected in the rent demand. Sunnyvale is one of the desirable cites in CA. I think with 20% down a real Cash Flow is going to be tight because of the HOA fees and price of purchase. You may find a few short sales or REO, then you will have to adjust for your improvements before putting on market.

Happy Real Estate!
Web Reference:  http://www.terrivellios.com
0 votes
Andrea Wince…, Agent, Milpitas, CA
Sun Oct 30, 2011
Hi Dawn, is the 20% your down payment and what is your budget for a purchase price ? We would have to compare rents in the neighborhood with your expenses including the monthly HOA fee. If you would like me to send you some local MLS listings in Sunnyvale, please contact me through my Trulia profile. Kind regards, Andrea.
0 votes
Bill Eckler, Agent, Venice, FL
Sun Oct 30, 2011
Dawn,

I'm confused......

Are you asking this question relative to your personal needs or are you inquiring because to attract potential buyers?

Bill
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