Which is the best place in bay area to buy a second home as an investment property. I am looking at a price of $300K or less.

Asked by vs2407, Mountain View, CA Tue Sep 4, 2012

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Juliana Lee, Agent, Palo Alto, CA
Sun Sep 23, 2012
Your $300,000 price puts a pretty strong limit on where you can look. Even if you look as far east as Contra Costa County most homes will be out of your price range (only 18 out of about 680 in Contra Costa County)

Marcy's suggestion for Santa Cruz is right on target. With state cutbacks, new housing at the UC, for students, won't be starting soon. Santa Cruz has a significant number of homes for sale in your price range.

There are also a good number of homes further south in Monterey County. Areas dependent upon tourist dollars tend to have wider swings in home prices. Finding an area popular with tourists and buying when the economy is weak can lead to very good appreciation as the economy improves. In Silicon Valley homes have risen significantly this year. Finding a nearby tourist area to benefit this way would be challenging.

Juliana Lee
0 votes
Marcy Moyer, Agent, San Ramon, CA
Tue Sep 4, 2012
I think Santa Cruz is a great place for investment properties. The rental market is always strong because of the university. there is never enough housing for the students and their parents pay the rent. Also, if you really want a second home you can use you can rent it out for the school year and use yourself in the summer, or rent to students in the summer and a vacation rental in the summer. Also the competition is much less there so it is easier to get a good deal.
Marcy Moyer
DRE 01191194
Web Reference:  http://www.marcymoyer.com
0 votes
I would love to consider Santa Cruz. Do you happen to have any listings that meet my criteria. ?
Flag Tue Sep 4, 2012
Elena Talis, Broker, Palo Alto, CA
Tue Sep 4, 2012
Look at condos in Mountain View and further south. I would be looking only at 2-bedroom units. Good luck!
Web Reference:  http://talisrealestate.com
0 votes
Do you happen to have a listings that you can send me. Thanks!
Flag Tue Sep 4, 2012
Norman Aless…, Agent, San Jose, CA
Tue Sep 4, 2012
I agree completely with Michael, it all depends on your investment goals. In your price range be prepared for stiff competition, you can win out, but it requires lots of offers. Work with a good buyers agent who understands this market and what it will take to get you what you are after.
Please feel free to contact me with any questions.
At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes
Michael Cheng, Agent, San Jose, CA
Tue Sep 4, 2012
As always, the answer depends on what you're looking to accomplish. There are areas great for appreciation and others for cash flow. Some are balanced for both.

At $300K or less, you're looking at a highly competitive segment of the market. Simply knowing where to look is not enough. Winning a deal is tough. Even though I help buy investment properties all day long and have a very good idea of what it takes to win, I have to put in up to a dozen strong offers for my investor clients before getting a single win.
Web Reference:  http://www.archershomes.com
0 votes
I am obviously interested in appreciation as well as rental income. A balance of both would be great. Based on your experience, which areas would be good to look at - in the bay area. I am sure it is hard to find anything in Mountain View or Palo Alto. But what about surrounding areas.

I am obviously interested in appreciation as well as rental income. A balance of both would be great. Based on your experience, which areas would be good to look at - in the bay area. I am sure it is hard to find anything in Mountain View or Palo Alto. But what about surrounding areas.
Flag Tue Sep 4, 2012
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