Stock or where do you guys to buy rental or investment properties now in Bay area?

everywhere is so expensive, does it still make sense to buy? I am thinking to buy in Antioch , Pittsburg area where price still not that high. Also there’s an option to buy stock, but they are so expensive as well. I personally bought $150k stock 2 months ago.

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Cash is a valid position. Don’t force yourself to buy something if the purchase doesn’t fit your investment goals. Cash is better than reaching and losing money.

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I realized it one year before. They are not only expensive, but also not in good location (T cut or high traffic road) or lay out (add on clumsy layout etc).

I personally bought $150k stock 2 months ago. => That is what I am doing now and getting a better returns too.

Well the worse, my wife bought $500k worth of stock 2 months ago too. but it’s so risky when the stock is 4 times the March 2009 low. I might buy one more rental and final rental home. the problem with rental home is to take care of it and worry about it. Leaving cash will guarantee lose value over time.

If for example buying a rental home with $2000 rent and $400k. would it better than stock?

It all depends on time horizon & diversification

Yeah, both stocks and housing are expensive now. Stock is more risky but you can make some quick bucks if you are good at trading.

Housing is less risky than stocks. If you can keep cash flow positive, most likely you’ll make good money if you hold for decades

not wantting to trade stocks, it’s even more risky if I do any trading. Anyone have rental houses in Pittsburg or Antioch? how does it like?

@wuqijun invests in that area (not sure about flips vs rentals)

Yes, I have rentals in Pittsbrug and Antioch. Done a lot of flipping there too. Made lots of money can’t complain… :wink:

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how can you do any flip in such low price area unless you are a contractor? the remodel cost simply too great for low price homes. I am trying to buy a rental there thinking the BART station opening next year.

Plenty of room. I’m not a contractor and I flipped many. All made money never in the red.

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it’s too far to manage the project for me. also deals are too thin there for me. but might consider if it’s a long term rental.

Yes, I have plenty of long term rentals here… all cash cows laughing all the way to the bank every single time… :wink:

Any idea what neighborhood to buy? such as zip codes? I just started looking in that area. Not so many Asian tenants there, right? I should have bought a lot during the down time. now seems a little expensive and can’t find cash flow propertiies anymore.

Plenty of good cash flow properties available. Especially if you are willing to do the work and dig them up yourself. If you want less hassle (but will get less of a return :wink:) I can refer you to an agent who is more than happy to do all the leg work for you.

Do you “dig them up” to find off market deals? There’s very few distressed sales now

Yes , I almost give up on looking for deals. For fixers, I do not want to do the work, unless the property management company can help to get it ready for rent.

One way is to go to the court step and wait on those foreclosures… I have done that plenty of times and reaped good profit from that. However it is time consuming mind numbing kind of work. I wouldn’t recommend that unless you are a hardcore flipper like I was… :laughing:

I haven’t been to the court house steps yet, maybe should go at least once to check out those hardcore flippers and how the auction goes :grin:. I have an impression that most auctions would be cancelled and the foreclosure rate is so low now.

Inventory is really low right now. It’s hard to buy even when you are not looking for deals. Price can still go up quite a bit, but it’s hard to buy a long term rental with appreciation potential and good cash flow now