Which part of Gilroy is a good rental spot for investment home buying? How long does it take to rent out a?

Asked by Home Buyer, Santa Clara, CA Wed Jan 21, 2009

3 or 4 bedrooms single family place in Gilroy if it's priced at the market rate?

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Debby Bright, Agent, Oceanside, CA
Wed Jul 3, 2013
Most of the investment properties in Gilroy are located west of Welburn. Some of the units on Kelton Drive are very nice, among others. Call me and let me know your email address and I'll send you listings off the MLS.

Debby Bright
Real Estate Broker
CA DRE #00957311
0 votes
Chris, , 95037
Sun Mar 15, 2009
NW Quadrant is a hot spot, I do alot of Open Houses there for the price range of 300 - 450K and most folks are looking to buy property as an investment (i.e. rental unit).

Take Care
0 votes
BROKER_GRI, , Gilroy, CA
Sat Feb 7, 2009
If you averaged out the decline in value over the past 12 months the number would be -.07% While the decline appears to be slowing and inventory finally coming back into a balanced range (6 months) the preference would be to see this far more stable than current conditions for a sustained period of time.

Single Family Homes Gilroy
272 Active
157 Pending (if trends continue as they have been 42% will actually close)
327 Sold in the last 6mo

Hollister as mentioned by Sam is further ahead as far as the correction goes. Salinas is dicey at best. A bad area in Salinas is really bad (drive bys ect) . Also as mentioned by Sam multiple units will spread out your risk, another benefit is that you will usually see a higher capitalization rate (in this example; a higher return on your investment in annual income)

Something you may want to ask yourself is what goal are you trying to achieve?
Are you more concerned about cash flow or future value?
This is a link to a great tool authored by Gary Tharp. I like the second one down (5 yr). It is an Excel worksheet


One way to get information on how the rental market is doing is to call a few local property management companies and ask. That would also be a good time to interview property managers because until you are fairly well versed in landlord tenant laws the 7-10% you would pay them from the rent could save you $ and unnecessary headaches.

Best of luck to you and take your time.
0 votes
Sam Shueh, , San Jose, CA
Fri Jan 23, 2009
Same kind of question.
What is the projected ROI based on a big downpayment? Only newer homes have the potential to go up fast in price after the next rebound. Assuming you are only interested in 3 or >3 br SFH and 10 years or younger, there are 111 homes to make offer to. As for rental market there are 54 SFH (3 or >3 br) or 41 (4 br) you will be competing with. Some are vacant home off the sell market and looking for renters.

If you prefer more affordable homes I suggest Hollister, Salinas as the cost of homes are signifantly lower in relation to rents. When the tennent moves out you have 100% vacancy rate with a SFH. With a duplex it reduces your risk etc....
0 votes
Kathleen Sha…, Agent, Gilroy, CA
Wed Jan 21, 2009
As an investor you should be looking at cash on cash return, condition, homes versus apartments or multi unit.

Even Section 8 renters are good tenants and the neighborhoods are acceptable.

The east side of Monterey past the railroad tracks are considered working class neighborhoods.

The homes along Monterey and westward are older homes, many are hisorical.

North west quadrant of Gilroy are many newer developments.
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