Rental property in Berkeley, near UC

Asked by Steven, San Jose, CA Thu May 19, 2011

What things besides price, HOA, taxes, insurance do I need to consider before investing in a rental property (mainly condo) in Berkeley? I see prices vary a bit in the listings (the few that I see). Is it due to rent control? Tenents currently living there? Or other factors?

Thanks!

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4
Jodi Selene, Agent, Albany, CA
Fri May 20, 2011
Hi Steven,
The most important things to consider are location and condition of property.
A rental in Berkeley close in to the UC campus will almost certainly be a good rental investment IF it's maintained in good condition and the pricing is competitive.
When you're looking at investment property, make sure you use a good home inspector and ask lots of questions! I always accompany my buyers on inspections so that I can make ssure that they're getting a full education on the workings of their home or condo.
If the property has tenants currently living there, you could be inheriting an unrealistic rental rate. Make sure that the tenants have been paying their rents on time and, if the property has very long term tenants enjoying the benefits of Berkeley's rent control laws.... you may do better as an investor looking elsewhere.
Good luck, Jodi Selene, DRE 01876775, Red Oak Realty, Berkeley, CA
0 votes
Kamal Randha…, Agent, El Sobrante, CA
Thu May 19, 2011
Hello Steven,

Berkekley is great for investment properties if you can afford it. Something closer the the campus works really well. Working with investors, I find the starters prefer getting into a duplex rather then a condo, (just due to the resale value and HOA fees are so outrageous on some units)...not to mention FHA laws are getting more and more strict on condo units which will make it even more difficult to sell later on.
0 votes
Kouros Kirk…, Agent, Walnut Creek, CA
Thu May 19, 2011
Hello Steven,
I think your investment property should be close to your base; Hopefully no longer than a 30 minutes drive.
Also, do not buy, where there is abundance of vacancy. Check the history of HOA management and frequency of HOA due increases. I would not buy in a small condo project (2-3 unit building)where, usually the building has poor management.
Good luck with your search. I have managed my own rentals for more than 20 years and I will be happy to answer any other questions you may have. Good luck- Kirk Ansari RE Broker/Consultant 415-819-7777
0 votes
The Wilder G…, Agent, Oakland, CA
Thu May 19, 2011
Hello - You may also want to consider property condition and the health of the HOA (ie reserves, delinquency rate, etc). Good luck with your property search! Farrah
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