buy & hold rental houses Riverside County?

[golfproz]

I would not expect much in the way of price gains in the IE for at least a decade. The IE was the most bubble inflated area in SoCal. Hell they were selling tract homes in MoVal at the peak for $700k! Now those are going for $250k. I have two rentals out there and they are both making some nice money for me. If you look carefully and pick up the right house in the right area you can do well. San Jacinto and Hemet are not the “right areas”. They are just too far out. Stick to Riverside or Moreno Valley. Even Perris is borderline too far out in the sticks. You can easily pick up an older 3/2 (late 80’s house) for under $150k that will rent for $1500/mo if it’s in a decent area and is in decent shape. The problem has been the competition for the properties at the low end. There’s a LOT of investor action for the good ones.

[Ren]

You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.

[Ren]

You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.

[Ren]

You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.

[Ren]

You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.

[Ren]

You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.

[waiting hawk]

[quote=Ren]You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.[/quote]
PERFECT!
Yes dont count on any upside in a decade at least and you will be good.

[waiting hawk]

[quote=Ren]You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.[/quote]
PERFECT!
Yes dont count on any upside in a decade at least and you will be good.

[waiting hawk]

[quote=Ren]You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.[/quote]
PERFECT!
Yes dont count on any upside in a decade at least and you will be good.

[waiting hawk]

[quote=Ren]You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.[/quote]
PERFECT!
Yes dont count on any upside in a decade at least and you will be good.

[waiting hawk]

[quote=Ren]You shouldn’t count on appreciation at all with rentals. It’s all about cash flow, ease of renting, low maintenance (newer), pricing below market, thoroughly screening tenants, and the best part – letting someone else pay your PITI for 30 years.

For investment property, it will be much easier to find financing with 30% down.[/quote]
PERFECT!
Yes dont count on any upside in a decade at least and you will be good.

[ctr70]

Thanks every one for the great comments! And especially Temecula Guy, thanks for your very helpful input!

Couple of random comments:
1. I feel pretty comfortable when I can buy a SFR BELOW construction costs. If I can buy it for FAR less than they can build it, if they EVER build a house again in Riverside Co. I’ll be in the money. Some of these houses just have to get back to construction costs and you will have decent equity. And I think they will get back there and I don’t think it will take 10 yrs. They have not built hardly anything in the Inland Empire (or the entire state of CA for that matter) in 3 years, they won’t build much in 2011, so that is 4 yrs with NO new homes being built (or multifamily). Eventually the existing inventory will get absorbed and I don’t think it will take 10 yrs. That could also push rents up.

2. I think when you can get an asset below construction costs, 60% below peak price, finance with a 5% 30 year fixed rate, and the tenant can pay that asset off for you in 15 years, it’s hard to see how that is a bad investment.

3. I do worry about the effect of gas prices on rents and values especially in the far flung regions of Riverside Co. Esp if they get up to $5-$6 a gallon. This fear favors buying close in SD condos.

What do investors think of condos in San Diego vs. SFR’s in Riverside Co.? Obviously San Diego is a much better rental market and more premium location than Riverside Co., but SFR’s are a more desirable asset b/c NO HOA risks. The cash flow numbers work for a lot of condos in SD County, and in good locations. The numbers do not work great for SFR’s in SD, even SFR’s in rougher neighs.

Personally I would only go SFR’s in Riverside. If I’m going to buy a condo I would go SD over Riverside in a heartbeat.

Any thoughts on Vegas and Phoenix? I know both are hurting bad. But like Riverside Co. you can buy way below construction costs and get new built SFR’s that cash flow. Yes I know there are crappy areas in both cities, but if you are careful you can pick the better areas. I hear they do rent up if you are very, very careful on neighborhood selection.

My personal goal is to get 6-10 houses paid off in 15 years as my personal pension plan. I have the down payments and can get 8 more conventional loans (I have 2 rentals already). I’m 40 yrs old right now. My plan is 20%-25% down on each and get them paid off in 15 years. Just need to choose where and what to buy!!

[ctr70]

Thanks every one for the great comments! And especially Temecula Guy, thanks for your very helpful input!

Couple of random comments:
1. I feel pretty comfortable when I can buy a SFR BELOW construction costs. If I can buy it for FAR less than they can build it, if they EVER build a house again in Riverside Co. I’ll be in the money. Some of these houses just have to get back to construction costs and you will have decent equity. And I think they will get back there and I don’t think it will take 10 yrs. They have not built hardly anything in the Inland Empire (or the entire state of CA for that matter) in 3 years, they won’t build much in 2011, so that is 4 yrs with NO new homes being built (or multifamily). Eventually the existing inventory will get absorbed and I don’t think it will take 10 yrs. That could also push rents up.

2. I think when you can get an asset below construction costs, 60% below peak price, finance with a 5% 30 year fixed rate, and the tenant can pay that asset off for you in 15 years, it’s hard to see how that is a bad investment.

3. I do worry about the effect of gas prices on rents and values especially in the far flung regions of Riverside Co. Esp if they get up to $5-$6 a gallon. This fear favors buying close in SD condos.

What do investors think of condos in San Diego vs. SFR’s in Riverside Co.? Obviously San Diego is a much better rental market and more premium location than Riverside Co., but SFR’s are a more desirable asset b/c NO HOA risks. The cash flow numbers work for a lot of condos in SD County, and in good locations. The numbers do not work great for SFR’s in SD, even SFR’s in rougher neighs.

Personally I would only go SFR’s in Riverside. If I’m going to buy a condo I would go SD over Riverside in a heartbeat.

Any thoughts on Vegas and Phoenix? I know both are hurting bad. But like Riverside Co. you can buy way below construction costs and get new built SFR’s that cash flow. Yes I know there are crappy areas in both cities, but if you are careful you can pick the better areas. I hear they do rent up if you are very, very careful on neighborhood selection.

My personal goal is to get 6-10 houses paid off in 15 years as my personal pension plan. I have the down payments and can get 8 more conventional loans (I have 2 rentals already). I’m 40 yrs old right now. My plan is 20%-25% down on each and get them paid off in 15 years. Just need to choose where and what to buy!!

[ctr70]

Thanks every one for the great comments! And especially Temecula Guy, thanks for your very helpful input!

Couple of random comments:
1. I feel pretty comfortable when I can buy a SFR BELOW construction costs. If I can buy it for FAR less than they can build it, if they EVER build a house again in Riverside Co. I’ll be in the money. Some of these houses just have to get back to construction costs and you will have decent equity. And I think they will get back there and I don’t think it will take 10 yrs. They have not built hardly anything in the Inland Empire (or the entire state of CA for that matter) in 3 years, they won’t build much in 2011, so that is 4 yrs with NO new homes being built (or multifamily). Eventually the existing inventory will get absorbed and I don’t think it will take 10 yrs. That could also push rents up.

2. I think when you can get an asset below construction costs, 60% below peak price, finance with a 5% 30 year fixed rate, and the tenant can pay that asset off for you in 15 years, it’s hard to see how that is a bad investment.

3. I do worry about the effect of gas prices on rents and values especially in the far flung regions of Riverside Co. Esp if they get up to $5-$6 a gallon. This fear favors buying close in SD condos.

What do investors think of condos in San Diego vs. SFR’s in Riverside Co.? Obviously San Diego is a much better rental market and more premium location than Riverside Co., but SFR’s are a more desirable asset b/c NO HOA risks. The cash flow numbers work for a lot of condos in SD County, and in good locations. The numbers do not work great for SFR’s in SD, even SFR’s in rougher neighs.

Personally I would only go SFR’s in Riverside. If I’m going to buy a condo I would go SD over Riverside in a heartbeat.

Any thoughts on Vegas and Phoenix? I know both are hurting bad. But like Riverside Co. you can buy way below construction costs and get new built SFR’s that cash flow. Yes I know there are crappy areas in both cities, but if you are careful you can pick the better areas. I hear they do rent up if you are very, very careful on neighborhood selection.

My personal goal is to get 6-10 houses paid off in 15 years as my personal pension plan. I have the down payments and can get 8 more conventional loans (I have 2 rentals already). I’m 40 yrs old right now. My plan is 20%-25% down on each and get them paid off in 15 years. Just need to choose where and what to buy!!

[ctr70]

Thanks every one for the great comments! And especially Temecula Guy, thanks for your very helpful input!

Couple of random comments:
1. I feel pretty comfortable when I can buy a SFR BELOW construction costs. If I can buy it for FAR less than they can build it, if they EVER build a house again in Riverside Co. I’ll be in the money. Some of these houses just have to get back to construction costs and you will have decent equity. And I think they will get back there and I don’t think it will take 10 yrs. They have not built hardly anything in the Inland Empire (or the entire state of CA for that matter) in 3 years, they won’t build much in 2011, so that is 4 yrs with NO new homes being built (or multifamily). Eventually the existing inventory will get absorbed and I don’t think it will take 10 yrs. That could also push rents up.

2. I think when you can get an asset below construction costs, 60% below peak price, finance with a 5% 30 year fixed rate, and the tenant can pay that asset off for you in 15 years, it’s hard to see how that is a bad investment.

3. I do worry about the effect of gas prices on rents and values especially in the far flung regions of Riverside Co. Esp if they get up to $5-$6 a gallon. This fear favors buying close in SD condos.

What do investors think of condos in San Diego vs. SFR’s in Riverside Co.? Obviously San Diego is a much better rental market and more premium location than Riverside Co., but SFR’s are a more desirable asset b/c NO HOA risks. The cash flow numbers work for a lot of condos in SD County, and in good locations. The numbers do not work great for SFR’s in SD, even SFR’s in rougher neighs.

Personally I would only go SFR’s in Riverside. If I’m going to buy a condo I would go SD over Riverside in a heartbeat.

Any thoughts on Vegas and Phoenix? I know both are hurting bad. But like Riverside Co. you can buy way below construction costs and get new built SFR’s that cash flow. Yes I know there are crappy areas in both cities, but if you are careful you can pick the better areas. I hear they do rent up if you are very, very careful on neighborhood selection.

My personal goal is to get 6-10 houses paid off in 15 years as my personal pension plan. I have the down payments and can get 8 more conventional loans (I have 2 rentals already). I’m 40 yrs old right now. My plan is 20%-25% down on each and get them paid off in 15 years. Just need to choose where and what to buy!!

[Author]

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