I started too many topic around primary home, but let’s start one for investment.
TODAY, if you were to buy in Bay Area that can give you cashflow, where would you buy it? Yes, we can talk about Condo to SFH to Duplex to 4-Plex. Or we all agree that BA is just appreciation play and we need to get out of BA to get cashflow?
I think the Berryessa area of SJ has more room to grow. The prices are still pretty low for the rating of the schools, and BART is going to serve the area. The schools are only going to improve as more college educated families move there to commute to SF and N SJ. There’s not many spots that are a pretty good commute to SF and N SJ at the same time.
Nothing in the South Bay (or SF, or the Peninsula) can give you positive cash flow with 25% down, which is the minimum downpayment for an investment property. Not a single house, condo, or multiplex.
To get to positive cash flow, you will need to look to the East Bay or North Bay. Condos in Solano County are still a no brainer cash cow. Condos and houses in East Contra Costa can still yield slight positive cash flow. Grab them while you still can!
10-20 years. Depends on speed of the demographic shift. If you’re buying a rental to hold long-term, then I’d use that approach. It’s not great for a primary residence, since most people will want to use the schools faster than that.
Yea, that was my main issue with BA right now. I wanted to mix in some cash flow (doesn’t need to be too much) but enough and depreciation will make sure I don’t have to pay tax on that cash flow.
@wuqijun, do you mind sharing some of the listing information even if it is recent sale? Since I don’t know the area well enough, I wanted to make sure I can do homework based off your input.
That’s crazy. With $7000/month Gross and some common expense since it is 4-plex, I feel like 1.5M is too much to pay. And same thing for that Sunnyvale Duplex. I don’t want to force a cashflow with >50% down, I think 30% down seems reasonable enough to get some leverage and not stretching thin.
Come on guys, if something says “income restriction” and “must be owner occupied”, you know it’s cheap for a reason. Why even try to find a loophole and turn it into an investment property? It will not work!!!
Owner occupancy is mostly enforced by the HOA and they will check on you…