[quote=Ren][quote=Kingside]What gives me peace of mind is buying at the right price from a cash flow perspective, not the location.[/quote]
^ This.
Paying $380k for an older SFR rental would be a profoundly bad decision. Factoring in very long-term maintenance (30-40% of rent – no exaggeration), you’ll be in the negative for the next 30 years, and don’t count on any appreciation for a while. I would sooner buy a boat, and that’s just crazy. If you must buy close to home, older Carlsbad condos will cash flow decently.
If it’s passive income you’re after, go cheap. And if you plan to have someone else manage it, think about Riverside county or a more landlord-friendly state.[/quote]
Thanks Ren. I appreciate your straightforward advice. I’m thinking 35% of rent might be a bit high, but you never know I guess. That would be $875 a month in maintenance for a $2500 month rental. I’m not going to let Motley Crue live in my rental man! I’ve already got a friend with a boat and thats my favorite kind of boat. I’ve actually checked out Tanglewood in Cbad, but the HOA is so high. If you get it for the right price though it might not matter still might cash flow pretty good. Riverside might have a bit of a draw as well…I’m considering that as well at this point.
