Tracy or Stockton is good for investment? $200k price level with easy cash flow positive?

Asked by Housing, Danville, CA Tue Mar 15, 2011

Tracy or Stockton is good for investment? $200k price level with easy cash flow positive?
In general how much is the difference in interest rate with respect primary and investment house if we pt 20% down.

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Carol Perdew, Agent, Manteca, CA
Tue Jul 12, 2011

Congratulations on your decision to buy an investment property. There are fantastic opportunities in Stockton and Tracy areas to buy investment property that will give a favorable cash flow. I am working with several investors and the lenders are requiring minimum of 20% down payment for investment property financing. Economic experts consider this to be a fantastic time to purchase a home.

For nearly a decade I have been serving the real estate needs of clients throughout the San Joaquin Central Valley. My reputation for hard work, dedication, honesty and professionalism results in repeat clients and referrals. I pride myself on being patient, detail-oriented and well-educated to ensure her clients have the best possible home buying or selling experience.

I would like the opportunity to talk with you about your real estate purchase. Please to my website at where you can search for homes and access real estate information. Let me now how I can assist you.

Carol Perdew
Prudential California Realty
(209) 239-7979
DRE 985176
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lmc, Home Buyer, Tracy, CA
Fri May 13, 2011
I have several investment properties that I have purchased since home prices have plummeted. I paid on average a difference of 1/2 a percentage point. The exact rate you get depends on your credit scores.
I think buying investment now is a a great idea as long as you really research the area you are interested in an know the housing prices. Don't overpay and you can easily clear $500.00 a month after you deduct your mortgage, taxes and insurance. I am getting at least or close to this return on all my properties.
Buying the first one took all the courage I had but I'm so glad I did and I'm definitely trying to acquire as many as I can before the prices go up and you can't get the positive cash flow we are seeing today.
As far as Tracy or Stockton you have to ask yourself what long term use you have planned for the property. IMHO, I believe that Tracy homes will be a better investment in the long term and will appreciate at a higher rate but in the short term you could probably get a higher cash flow with homes in Stockton.

Good LUck
0 votes
Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Tue Mar 22, 2011

If you're purchasing an investment home, you would have a significant rate/price adjustment between 75% and 80% LTV (so the difference between a 20 and 25% down payment). To give you an example at today's pricing (and 0 points), here's a comparison of rates. These are not actionable quotes (for purposes of disclosure) and are for example only:

80% Owner Occupied, 30-Year Fixed, 4.750%
80% Non-owner Occupied, 30-Year Fixed, 5.250%
75% Non-owner Occupied, 30-Year Fixed, 5.000%

Finally, the short video below talks more about the distinctions between investment and primary and the rates related to them.

Let me know if I can be of further assistance!

Thank you,

Rob Spinosa
0 votes
Michael Cole…, Agent, Tracy, CA
Wed Mar 16, 2011
The short answer is yes you can buy residential properties in the either Tracy or Stockton for $200,000 or below and generate positive cash flow. Depending on your investment focus i.e. cash flow, long term appreciation or a mix of both I can show you a number of properties that would work. If you would like to know more about how that is done call me at 209 239-4949.

I will leave it up to the mortgage broker or loan officers to answer you question on the interest rate differential.
0 votes
Debbi Foster, Agent, Tracy, CA
Wed Mar 16, 2011
The Central Valley is always a great place to invest but as with any investment be particular. Tracy is a great community with eacy access to freeways. I have worked with Brian at Vintage Mortgage and he is very easy to work with and goes out of his way to get you all the information you need as quickly as possible to make a good financial decision.

Warmest Regards, Debbi
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, ,
Wed Mar 16, 2011

There is always good investment potential in the Central Valley. I would recommended being "choosy" in what area you select though. I highly recommended selecting an agent that knows the areas very well and I can send you my choice if you're interested.

In regards to financing there are a few options and different cost structures you can take a look at. One option you may not have heard of offers 10% down on investment properties with no mortgage insurance. Id be happy to discuss it anytime. Just shoot me an email!

Best, Brian
I also have a site with some great investment properties
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