Is this income stated realistic one?

I see high income (Annual Income: $202,803) from this apartment homes, but still on sale for a longer period.

Is this income realistic? This home may not appreciate, but compared to bay area location, the cash flow looks great.

Why is this not sold over a long time?

Each 2/1 unit is 560 / month. I think it is possible numbers for that area. Maybe they are overstating with 100% occupancy. Expense seems like in the ballpark figure with 50% rule? Maybe deferred maint?

I was also looking some attractive numbers in Mid-west like:

Looks like a good neighborhood based on Google street view.


10 cap! But I am hesitant about Midwest. Population and economy is increasingly moving to the South and the West, thus my recent obsession with Florida… :slight_smile:

The high speed rail is dead. Like I predicted Trump is killing it. Any investment in the Central Valley needs to account for that.

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Yea, when I visited Fresno last year, HSR was the only hope.

People in Fresno go to Stockton for vacation. .Fresno is the armpit of California. .


What would you pick between say B+ area in Mid-west city (with 10 cap) vs C area in say Sacramento (with 7 cap)?

I feel you might get more pain in managing C area in Sacramento than owning that B+ area in mid-west. I am debating since I don’t really feel those B+ area will become less desirable even if economy is slowing down. Yea, Detroit was one example out of so many cities there. On top of that you got buffer of 3% CAP rate to come down to par with 7% in Sac or LA area.

Anyone has explore anything in LA area?

The Midwest and the east coast are hopeless, why bother…I had a friend move from Cleveland to Oakland…Oakland compared to Cleveland was paradise…Florida and Texas have some hope…but they have low barriers to entry and high maintenance costs due to god awful weather… Better to build take profit and run…

I have never dealt with C area, and don’t have the stomach for it. Some folks here land lording in rougher areas of Oakland seem to enjoy it so far. B area in Midwest is fine, except the Midwest part. It’s the reverse of “rising tide lifts all boats”. I think I’d be swimming against current in Midwest.

Remember this map?

I’d limit myself to these 10 areas. West coast is already too expensive for cashflow, and I am looking to add some cashflow, so no go there. If you like Cincinnati, why not take a look at Nashville and Charlotte? I am learning about Tampa now.

But that’s like taking on another job… nothing passive about that.

What about this house in Oakland?

Zillow rent estimate says $2700. Doesn’t that seem a bit high? PITI is only $1800 or so, so cashflow would be really good if that 2700 number is close to being real.