invest property in palmdale

Asked by First Time Buyter, Temple City, CA Mon Apr 9, 2012

I'd like to invest a property in palmdale & then rent it out. Which area is good for rental which has easy access to freeway, shopping & nice neighborhood for family? Thanks!

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Tom Sanchez, , Palmdale, CA
Tue Apr 10, 2012
I own a few rentals here in the AV. In my opinion the best return for a rental property would be the west side of Lancaster. I always try to keep my clients at or above a 20% Cap Rate, if your buying Cash the Cap Rate will be lower.

I recently sold (3 months ago) a turnkey 2001 3+2 very close to the freeway for $106K. Its a little high but with the 20% down financing and he leased it for $1300, it yeilds a high Cap Rate. Also, because of the age of the property, it can be sold when the market goes up and still NOT be concidered an "old home".

The Cap Rate drops as a Rental property moves into more desirable locations and as the homes gets bigger.

Its kind of a lame saying but I tell my clients, "keep it small, a 3+2 will cap them all".

I could push my investors into buying a larger home as an investment and I would end up making more money now. But I'd rather give good advice that I myself live by, get them a great investment, create a good Real Estate relationship now, and when its time to sell the property, I will be the one they call.

Tom Sanchez
Re/Max All Pro (Lancaser, Palmdale)
661-435-6802
0 votes
Joanne Sterl…, Agent, Portland, OR
Mon Apr 9, 2012
Good morning "First Time Buyer..."
You asked about a Palmdale rental investment, and I would suggest that the location will depend...
it depends on your budget/price range, your experience with tenants, and whether you prefer
"hands on" management, or supervision from afar.

In general, the West side of Palmdale is the preferred choice for homeowners. However, for renters
either location is excellent if you are careful with neighborhoods. For this reason, it's best to have
a LOCAL realtor.

I can supply you with statistics, if you wish to contact me with an email address. You are wise to
consider an investment now, while interest rates and prices are historically low. Good Luck!

Joanne Sterling
Keller Williams Antelope Valley
323-377-7056
JoanneSterling1@Gmail.com
0 votes
Edwin Momeny, Agent, Newhall, CA
Mon Apr 9, 2012
Good afternoon:

Investors are purchasing properties in all parts of the valley, including both Palmdale and Lancaster. There are a few factors that go into deciding what part of the valley is best for your objectives, and I am happy to go over them with you at a convenient time.

The most desireable area for commuters and families that want good schools is West Palmdale, which begins at the 14 Freeway and heads west to about 70th Street West and north to Avenue M8. There are not many parts of the westside that are a bad investment, including Quartz Hill, but I still suggest you research the curb appeal and age of the neighborhood before jumping into a purchase. As you get to know West Palmdale and Quartz Hill, you will see that each area has different pluses and minuses. Quartz Hill is quieter for the most part, but it is also further away from the freeway. If you are trying to attract a renter from the Antelope Valley, either area will work fine. For commuters, they tend to want to be in West Palmdale. FYI, the best school district in West Palmdale starts at 25th Street West and heads in a northwest direction.

I currently work with many investors who purchase and rent properties in this valley, and they have vastly different criteria and experiences. Please give me call when you are ready to discuss your needs, and I will do my best to help you find the best rental home for your objectives.

Sincerely,


Eddie Momeny
Realty Executives
661-860-1408
emomeny@gmail.com
0 votes
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