This is an interesting point. A friend of mine is using this approach, catering to long term quality tenants and he is doing well, but again he has probably put down a sizable amount in order to achieve positive cash flow. As we all know SFR in a good school district and desirable family oriented neighborhood is NOT cheap. So one more thing to add to the equation is to look into your pocket. How deep it is?
Question to those who have invested in the areas such as San Carlos (2/2 cando that rents for 1350 and cost 130K), or the 1/1 cando that rents for 900-1000 and costs 100k, or 92120 3/3 cando that rents for 1500 cost 130-160k, what are your experience with tenants? What is the average vacancy and turn over rate? Would love to hear some thoughts.
As for out of state investment or out of SD investment, even if with the same amount of money, one can get a SFR instead of Cando, but if SD market is doing better overall, we could see the same level of return, right? Any thoughts?
