[surveyor]

$200k gain

A 4% appreciation rate over 15 years can add up to about $200k, so I don’t think a $200k capital gain is totally unreasonable.

SD R, the property is Huntsville is doing pretty well so far. It’s still too early yet, we just closed on January.

[surveyor]

$200k gain

A 4% appreciation rate over 15 years can add up to about $200k, so I don’t think a $200k capital gain is totally unreasonable.

SD R, the property is Huntsville is doing pretty well so far. It’s still too early yet, we just closed on January.

[surveyor]

$200k gain

A 4% appreciation rate over 15 years can add up to about $200k, so I don’t think a $200k capital gain is totally unreasonable.

SD R, the property is Huntsville is doing pretty well so far. It’s still too early yet, we just closed on January.

[surveyor]

Variables

The numbers I like to look at tend to vary because everyone has different situations, but here are the basics:

a) ROE > 20%

(some people will be happy with a 15% ROE if they want to play it safe, but I have a 30 year window so I look for more). ROE dramatically increases however the less downpayment you have…

b) Cash on cash > Interest Rate + 3%

If your downpayment is borrowed money, the biggest the cash on cash the better. However, if you are using actual cash, you do have a bit more leeway but it is recommended to at least consider this value into account (the theory being that if you deposit the downpayment into a bank and get 3% interest, your real estate investment should do better than that).

c) Cash flows or breaks even

d) Per Unit cost < $175k This rule tends to disquality most properties in California. There have been a few properties I've seen in San Diego that are close to cash flowing, but they are in historically bad areas and I've been better properties in other locations. When investing in real estate, you have to look at your personal situation and decide what your priorities are. If you have a wife or family, you need to make sure your property cash flows a sufficient amount so as not to impact the family finances. If you are a high income individual or family, your real estate investment can break even or even be negative cash flowing so that you can save on taxes.

[surveyor]

Variables

The numbers I like to look at tend to vary because everyone has different situations, but here are the basics:

a) ROE > 20%

(some people will be happy with a 15% ROE if they want to play it safe, but I have a 30 year window so I look for more). ROE dramatically increases however the less downpayment you have…

b) Cash on cash > Interest Rate + 3%

If your downpayment is borrowed money, the biggest the cash on cash the better. However, if you are using actual cash, you do have a bit more leeway but it is recommended to at least consider this value into account (the theory being that if you deposit the downpayment into a bank and get 3% interest, your real estate investment should do better than that).

c) Cash flows or breaks even

d) Per Unit cost < $175k This rule tends to disquality most properties in California. There have been a few properties I've seen in San Diego that are close to cash flowing, but they are in historically bad areas and I've been better properties in other locations. When investing in real estate, you have to look at your personal situation and decide what your priorities are. If you have a wife or family, you need to make sure your property cash flows a sufficient amount so as not to impact the family finances. If you are a high income individual or family, your real estate investment can break even or even be negative cash flowing so that you can save on taxes.

[surveyor]

Variables

The numbers I like to look at tend to vary because everyone has different situations, but here are the basics:

a) ROE > 20%

(some people will be happy with a 15% ROE if they want to play it safe, but I have a 30 year window so I look for more). ROE dramatically increases however the less downpayment you have…

b) Cash on cash > Interest Rate + 3%

If your downpayment is borrowed money, the biggest the cash on cash the better. However, if you are using actual cash, you do have a bit more leeway but it is recommended to at least consider this value into account (the theory being that if you deposit the downpayment into a bank and get 3% interest, your real estate investment should do better than that).

c) Cash flows or breaks even

d) Per Unit cost < $175k This rule tends to disquality most properties in California. There have been a few properties I've seen in San Diego that are close to cash flowing, but they are in historically bad areas and I've been better properties in other locations. When investing in real estate, you have to look at your personal situation and decide what your priorities are. If you have a wife or family, you need to make sure your property cash flows a sufficient amount so as not to impact the family finances. If you are a high income individual or family, your real estate investment can break even or even be negative cash flowing so that you can save on taxes.

[surveyor]

Variables

The numbers I like to look at tend to vary because everyone has different situations, but here are the basics:

a) ROE > 20%

(some people will be happy with a 15% ROE if they want to play it safe, but I have a 30 year window so I look for more). ROE dramatically increases however the less downpayment you have…

b) Cash on cash > Interest Rate + 3%

If your downpayment is borrowed money, the biggest the cash on cash the better. However, if you are using actual cash, you do have a bit more leeway but it is recommended to at least consider this value into account (the theory being that if you deposit the downpayment into a bank and get 3% interest, your real estate investment should do better than that).

c) Cash flows or breaks even

d) Per Unit cost < $175k This rule tends to disquality most properties in California. There have been a few properties I've seen in San Diego that are close to cash flowing, but they are in historically bad areas and I've been better properties in other locations. When investing in real estate, you have to look at your personal situation and decide what your priorities are. If you have a wife or family, you need to make sure your property cash flows a sufficient amount so as not to impact the family finances. If you are a high income individual or family, your real estate investment can break even or even be negative cash flowing so that you can save on taxes.

[surveyor]

Variables

The numbers I like to look at tend to vary because everyone has different situations, but here are the basics:

a) ROE > 20%

(some people will be happy with a 15% ROE if they want to play it safe, but I have a 30 year window so I look for more). ROE dramatically increases however the less downpayment you have…

b) Cash on cash > Interest Rate + 3%

If your downpayment is borrowed money, the biggest the cash on cash the better. However, if you are using actual cash, you do have a bit more leeway but it is recommended to at least consider this value into account (the theory being that if you deposit the downpayment into a bank and get 3% interest, your real estate investment should do better than that).

c) Cash flows or breaks even

d) Per Unit cost < $175k This rule tends to disquality most properties in California. There have been a few properties I've seen in San Diego that are close to cash flowing, but they are in historically bad areas and I've been better properties in other locations. When investing in real estate, you have to look at your personal situation and decide what your priorities are. If you have a wife or family, you need to make sure your property cash flows a sufficient amount so as not to impact the family finances. If you are a high income individual or family, your real estate investment can break even or even be negative cash flowing so that you can save on taxes.

[surveyor]

I’ve decided to give mine to charity – the San Diego Food Bank. That to me will do more than buying that cool 1080p projector I’ve been eyeing…

[surveyor]

I’ve decided to give mine to charity – the San Diego Food Bank. That to me will do more than buying that cool 1080p projector I’ve been eyeing…

[surveyor]

I’ve decided to give mine to charity – the San Diego Food Bank. That to me will do more than buying that cool 1080p projector I’ve been eyeing…

[surveyor]

I’ve decided to give mine to charity – the San Diego Food Bank. That to me will do more than buying that cool 1080p projector I’ve been eyeing…

[surveyor]

I’ve decided to give mine to charity – the San Diego Food Bank. That to me will do more than buying that cool 1080p projector I’ve been eyeing…

[surveyor]

new website for rental prices

I just found this new website that tracks rental prices. It’s much better than rentometer and it actually gives out really good information about the neighborhood you are looking up.

http://www.zilpy.com

I tested some of the rent prices, and it seems that my rents are too low! Even after my increases! So take it with a grain of salt, as you must with any information that comes your way.

The site is pretty good because it gives statistics on $/sq. ft., neighborhood crime statistics, incomes, vacancy rates, and even differentiates between types of rental units, such as SFRs vs. apartments. Good stuff.

I also read this article at calculated risk that says that the rental market in San Diego is brisk and that they expect rent price increases (although they say the opposite about Riverside and San Bernardino).

http://calculatedrisk.blogspot.com/2008/02/bre-properties-renters-moving-out-to.html

The numbers being reported here seem to be by large REITs and large apartment managers.

[surveyor]

new website for rental prices

I just found this new website that tracks rental prices. It’s much better than rentometer and it actually gives out really good information about the neighborhood you are looking up.

http://www.zilpy.com

I tested some of the rent prices, and it seems that my rents are too low! Even after my increases! So take it with a grain of salt, as you must with any information that comes your way.

The site is pretty good because it gives statistics on $/sq. ft., neighborhood crime statistics, incomes, vacancy rates, and even differentiates between types of rental units, such as SFRs vs. apartments. Good stuff.

I also read this article at calculated risk that says that the rental market in San Diego is brisk and that they expect rent price increases (although they say the opposite about Riverside and San Bernardino).

http://calculatedrisk.blogspot.com/2008/02/bre-properties-renters-moving-out-to.html

The numbers being reported here seem to be by large REITs and large apartment managers.

[Author]

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