Rich Renters


#62

Looks like a lot of land / space for the $.

I think it helps to identify your target market first. Are you buying property to lease it out? If yes, then who are you going after — what is their age / situation in life / etc.? Tailor the product to meet the market. Don’t build the product first and then find a market.

For instance - I target professional, high income couples (boyfriend/girlfriend) in their 30s. Usually no kids, although sometimes they do get married and have a kid. (Then they typically move after the kid is a few years old). I like this demographic because they are usually well heeled, extremely diligent about paying rent on time, and usually have very fine taste in home furnishings — which reflects in the care that they take of my properties.

Anyways, these kinds of professionals, I find, want to live in the city. They want the ability to walk to all kinds of neat restaurants / sights / attractions. They also want a garage to store their fancy car. They might use their fancy car for commuting, but I’ve found more often that they use their fancy car as an “accessory.” That is, they are living in a super walkable area already and they live near downtown (where they work) - so the car is an accessory — think trips to Napa, the Marin Highlands, etc.

From that, I buy properties that are in tony neighborhoods that meet the criteria.

Note — I’m older — I have no desire to live near downtown. I want peace and quiet, and more space. The SFH in San Jose you point out would be much closer to what I would want at my point in life ---- but I am certainly not marketing to myself. I am marketing to a demographic that is at a different point in life.

Perhaps you target a different demographic? Families with kids? Older people that are still renting? Try to use TAM and demographic shifts in your favor when it comes to finding the target market. You want to be marketing towards a demographic that is expanding in size. Go with the current of the river, don’t row your boat upstream.


#63

This is one of my neighborhoods, no intention to buy.

This place (2173 Dry-creek) is for wealthy professionals/business owners who wants to live near by town access, but quiet location.

The beauty of the place is made up of old creek, no water - i.e., dry creek. Winding Roads inside the creek, large lot homes at the banks of creek, pristine original greenery is maintained. Just 5 miles from SJC airport.

During 2008 downturn, I saw similar home sold for 1.5M, full cash.

Last year, another home (1601-Dry-Creek-Rd) was sold for 1.965M. Yesterday I drove by, noticed the home was tore down, rebuilding brand new home. This one is next to books-in school, good elementary at this area.

https://www.redfin.com/CA/San-Jose/1601-Dry-Creek-Rd-95125/home/845728