[quote=infoseeker]Just pinging to see if folks have any inputs[/quote]
I think you probably need to do some research and calculate if a particular property(ies) works out for you in terms of your objectives.
No one will know better than your own due dilgence.
If this is your first time: some pointers would be
1. Figure out the cost of the home looking at comparables that sold recently.. If it’s a SFH, figure out how much maintenance you think you’ll need to do based on the specific condition of the home (consider likely repair of big items such as roof, plumbing)…
2. Figure out how much taxes (including any special bond assessments, mello ruse(sic)
3. Figure out how much it will be to insurance the place…
4. Figure out how much your mortgage would be given how much you plan on borrowing and at the rate you will be borrowing at…Add .50% for an investment property to the rate you normally would get for a owner occupied home.
5. Get a good estimate of how much rent you can get…The best way. Use craiglist and either figure out what people are asking for comparables rentals AND how long that rental is staying on craigslist. OR do a fake test post offering rent to see how much interest you get at the price you are advertising…
6. Do the math and figure out how much cash flow you would be generating per month…
Calculate your return on that positive cash flow versus how much money you will be putting in….
If you’re near break even, figure out if you are playing more so with appreciation from this price point on….. Some people don’t mind having $0 cash flow because they figure they are buying in an area with that will appreciate more in the future…
It also depends on your net worth/financial situation. Personally, recent price points, I wouldn’t count on appreciation alone, and wouldn’t want to buy something with a $0 cashflow, with the except of maybe something in Carmel Valley, and even then it would have to be something compelling for me.. But that’s just me.
