Opportunity for investment in San Jose (95111)

Asked by Kim, Texas Mon Sep 28, 2009

I am looking for an investment property in this area that would rent out for about $1500 a month. What price ranges should I be looking at and is this a good investment?

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3
Joe Salcedo, , San Jose, CA
Wed Oct 7, 2009
For investment property this is the right place you can get a Townhouise or
Condo in Seventrees Area at Price range from $100,000. to $145,000. HOa
are low compare to other Hoa. But if you buy a single home pricefrom $ 240,000 to
$260,000 you can get those REO/Short Sale that is good. But again if you running
a investment property you have to get a Management Property as mentioned in the
previous answer.
0 votes
Mario Pinedo,…, Agent, Cupertino, CA
Tue Sep 29, 2009
This is definitely an equity market, not a cash flow market. Yet, this year has had the best price per rent ratio since I started in 1991. A $250,000 condo/townhouse will rent for $1500 per month in general in a decent area. HOA fees tend to be high, so this cuts in to cash flow. Single family homes are $350,000+ in San Jose and wont rent for that much more. The financial crises also affected the 2-4 unit market. 5+ unit apatments were always underwritten very conservatively. A $350,000 range duplex with both sides renting for $1250 per month will give you very decent numbers.
0 votes
Bill Mccord, Agent, San Jose, CA
Mon Sep 28, 2009
Kim,
The best investment opportunities in this zip code will be 3/4 plex apartment buildings. Individual units will rent for about $900 each. You would be very foolish to do this without a competent Property Manager which would cost about 8% of the gross rents. Prices range from $400k to $600k depending on location and condition of the property.
Bill
0 votes
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