Investment property…Coastal vs. Escondido

[clearfund]

SDSURFER – SFRs were never meant to be cash flow vehicles and thus rarely cash flow decently. You are competing with 90% owner/users who have bid the price structure up to a zero return.

I would suggest looking into the commercial real estate world as it is designed to cash flow. That is its entire purpose! Here you are competing with 10% owner users so it has not been bid up to a zero return.

We are seeing all cash yields of 6%-10% on day one plus upside. The upside I reference is not from ‘market appreciation’ (i.e. hope it goes up) but rather from increasing the cash flow by filling vacancy, etc.

Thus we’ve done deals where it had a 8% yield on day 1, then within a few months it was delivering a 10% yield.

Before jumping in, expand your horizons into the commercial side. If nothing else, it will be a great education that will serve you well on your residential investments.

[sdrealtor]

The caveat I would add is SFR’s rarely cash flow in SD. They cash flow very well in other parts of the country including Riverside County. Be aware that clearfund is in the commercial real estate world so that is his bias. Not saying he’s wrong, but where you stand depends upon where you sit.

[sdrealtor]

The caveat I would add is SFR’s rarely cash flow in SD. They cash flow very well in other parts of the country including Riverside County. Be aware that clearfund is in the commercial real estate world so that is his bias. Not saying he’s wrong, but where you stand depends upon where you sit.

[sdrealtor]

The caveat I would add is SFR’s rarely cash flow in SD. They cash flow very well in other parts of the country including Riverside County. Be aware that clearfund is in the commercial real estate world so that is his bias. Not saying he’s wrong, but where you stand depends upon where you sit.

[sdrealtor]

The caveat I would add is SFR’s rarely cash flow in SD. They cash flow very well in other parts of the country including Riverside County. Be aware that clearfund is in the commercial real estate world so that is his bias. Not saying he’s wrong, but where you stand depends upon where you sit.

[sdrealtor]

The caveat I would add is SFR’s rarely cash flow in SD. They cash flow very well in other parts of the country including Riverside County. Be aware that clearfund is in the commercial real estate world so that is his bias. Not saying he’s wrong, but where you stand depends upon where you sit.

[bearishgurl]

[quote=clearfund]SDSURFER – SFRs were never meant to be cash flow vehicles and thus rarely cash flow decently. You are competing with 90% owner/users who have bid the price structure up to a zero return.[/quote]

clearfund, I can appreciate your bias to comm’l RE and large multifamily complexes. However, not everyone has the capital to purchase these properties or multiple REITs or the know-how and contacts to form managing partnerships that work for them. Not every area in SD county has SFR’s which are 90% owner-occupied, which are bid up in price to zero return. Many SFR’s (often fixers or near-fixers) languish on the market or are good properties to buy as an equity purchaser PRIOR to being foreclosed on (if they are not over-encumbered). Sometimes, an owner just has to move to be near family and can’t make the necessary repairs to compete in today’s sales market (where deep-pocketed owner-lenders are fixing-up properties reverting back to them at trustees sales prior to marketing them).

There are MANY areas of the county where a first-time individual investor can buy an SFR for $175K to $275K and the cash-flow numbers work out from day one if he/she manages it himself. These houses, in primarily “working class” areas are 40-75 years old and typically rent for $1350 to $1800 mo (avg rent $1650). Given the ultra-low interest rate climate of today and the fact that many condos can’t be financed due to low owner-occupancy of the complex or pending litigation, I believe that from now through the next 3-4 years (if mtg interest rates stay stable) is a very OPPORTUNE time to scoop up SFR investments (using a mtg), especially those on or close to public transportation. Remember, EVERYONE has to live somewhere.

[bearishgurl]

[quote=clearfund]SDSURFER – SFRs were never meant to be cash flow vehicles and thus rarely cash flow decently. You are competing with 90% owner/users who have bid the price structure up to a zero return.[/quote]

clearfund, I can appreciate your bias to comm’l RE and large multifamily complexes. However, not everyone has the capital to purchase these properties or multiple REITs or the know-how and contacts to form managing partnerships that work for them. Not every area in SD county has SFR’s which are 90% owner-occupied, which are bid up in price to zero return. Many SFR’s (often fixers or near-fixers) languish on the market or are good properties to buy as an equity purchaser PRIOR to being foreclosed on (if they are not over-encumbered). Sometimes, an owner just has to move to be near family and can’t make the necessary repairs to compete in today’s sales market (where deep-pocketed owner-lenders are fixing-up properties reverting back to them at trustees sales prior to marketing them).

There are MANY areas of the county where a first-time individual investor can buy an SFR for $175K to $275K and the cash-flow numbers work out from day one if he/she manages it himself. These houses, in primarily “working class” areas are 40-75 years old and typically rent for $1350 to $1800 mo (avg rent $1650). Given the ultra-low interest rate climate of today and the fact that many condos can’t be financed due to low owner-occupancy of the complex or pending litigation, I believe that from now through the next 3-4 years (if mtg interest rates stay stable) is a very OPPORTUNE time to scoop up SFR investments (using a mtg), especially those on or close to public transportation. Remember, EVERYONE has to live somewhere.

[bearishgurl]

[quote=clearfund]SDSURFER – SFRs were never meant to be cash flow vehicles and thus rarely cash flow decently. You are competing with 90% owner/users who have bid the price structure up to a zero return.[/quote]

clearfund, I can appreciate your bias to comm’l RE and large multifamily complexes. However, not everyone has the capital to purchase these properties or multiple REITs or the know-how and contacts to form managing partnerships that work for them. Not every area in SD county has SFR’s which are 90% owner-occupied, which are bid up in price to zero return. Many SFR’s (often fixers or near-fixers) languish on the market or are good properties to buy as an equity purchaser PRIOR to being foreclosed on (if they are not over-encumbered). Sometimes, an owner just has to move to be near family and can’t make the necessary repairs to compete in today’s sales market (where deep-pocketed owner-lenders are fixing-up properties reverting back to them at trustees sales prior to marketing them).

There are MANY areas of the county where a first-time individual investor can buy an SFR for $175K to $275K and the cash-flow numbers work out from day one if he/she manages it himself. These houses, in primarily “working class” areas are 40-75 years old and typically rent for $1350 to $1800 mo (avg rent $1650). Given the ultra-low interest rate climate of today and the fact that many condos can’t be financed due to low owner-occupancy of the complex or pending litigation, I believe that from now through the next 3-4 years (if mtg interest rates stay stable) is a very OPPORTUNE time to scoop up SFR investments (using a mtg), especially those on or close to public transportation. Remember, EVERYONE has to live somewhere.

[bearishgurl]

[quote=clearfund]SDSURFER – SFRs were never meant to be cash flow vehicles and thus rarely cash flow decently. You are competing with 90% owner/users who have bid the price structure up to a zero return.[/quote]

clearfund, I can appreciate your bias to comm’l RE and large multifamily complexes. However, not everyone has the capital to purchase these properties or multiple REITs or the know-how and contacts to form managing partnerships that work for them. Not every area in SD county has SFR’s which are 90% owner-occupied, which are bid up in price to zero return. Many SFR’s (often fixers or near-fixers) languish on the market or are good properties to buy as an equity purchaser PRIOR to being foreclosed on (if they are not over-encumbered). Sometimes, an owner just has to move to be near family and can’t make the necessary repairs to compete in today’s sales market (where deep-pocketed owner-lenders are fixing-up properties reverting back to them at trustees sales prior to marketing them).

There are MANY areas of the county where a first-time individual investor can buy an SFR for $175K to $275K and the cash-flow numbers work out from day one if he/she manages it himself. These houses, in primarily “working class” areas are 40-75 years old and typically rent for $1350 to $1800 mo (avg rent $1650). Given the ultra-low interest rate climate of today and the fact that many condos can’t be financed due to low owner-occupancy of the complex or pending litigation, I believe that from now through the next 3-4 years (if mtg interest rates stay stable) is a very OPPORTUNE time to scoop up SFR investments (using a mtg), especially those on or close to public transportation. Remember, EVERYONE has to live somewhere.

[bearishgurl]

[quote=clearfund]SDSURFER – SFRs were never meant to be cash flow vehicles and thus rarely cash flow decently. You are competing with 90% owner/users who have bid the price structure up to a zero return.[/quote]

clearfund, I can appreciate your bias to comm’l RE and large multifamily complexes. However, not everyone has the capital to purchase these properties or multiple REITs or the know-how and contacts to form managing partnerships that work for them. Not every area in SD county has SFR’s which are 90% owner-occupied, which are bid up in price to zero return. Many SFR’s (often fixers or near-fixers) languish on the market or are good properties to buy as an equity purchaser PRIOR to being foreclosed on (if they are not over-encumbered). Sometimes, an owner just has to move to be near family and can’t make the necessary repairs to compete in today’s sales market (where deep-pocketed owner-lenders are fixing-up properties reverting back to them at trustees sales prior to marketing them).

There are MANY areas of the county where a first-time individual investor can buy an SFR for $175K to $275K and the cash-flow numbers work out from day one if he/she manages it himself. These houses, in primarily “working class” areas are 40-75 years old and typically rent for $1350 to $1800 mo (avg rent $1650). Given the ultra-low interest rate climate of today and the fact that many condos can’t be financed due to low owner-occupancy of the complex or pending litigation, I believe that from now through the next 3-4 years (if mtg interest rates stay stable) is a very OPPORTUNE time to scoop up SFR investments (using a mtg), especially those on or close to public transportation. Remember, EVERYONE has to live somewhere.

[clearfund]

Bearish – Yes, I am a commercial guy but not sure where you get “large multi-family complexes” from my post as there was no mention of that. However, if you bothered to read the end of my post I stated that educating oneself on how commercial works will serve you well on residential investments too.

Obviously there are good deals to be had in the residential world as many smart people have been very successful.

[clearfund]

Bearish – Yes, I am a commercial guy but not sure where you get “large multi-family complexes” from my post as there was no mention of that. However, if you bothered to read the end of my post I stated that educating oneself on how commercial works will serve you well on residential investments too.

Obviously there are good deals to be had in the residential world as many smart people have been very successful.

[clearfund]

Bearish – Yes, I am a commercial guy but not sure where you get “large multi-family complexes” from my post as there was no mention of that. However, if you bothered to read the end of my post I stated that educating oneself on how commercial works will serve you well on residential investments too.

Obviously there are good deals to be had in the residential world as many smart people have been very successful.

[clearfund]

Bearish – Yes, I am a commercial guy but not sure where you get “large multi-family complexes” from my post as there was no mention of that. However, if you bothered to read the end of my post I stated that educating oneself on how commercial works will serve you well on residential investments too.

Obviously there are good deals to be had in the residential world as many smart people have been very successful.

[Author]

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