Invest 50K in CA preferably close to Bay Area

[Kamal Sharma]

Hi,

I wanted to buy my first rental SFH property.Want it near the bay area, preferably southern side and developed 1990 or later.

50K would be my down payments and I can go a little bit over if needed.

What are the best areas for +ve cash flow, Stockton, Tracy, Lathrop, Sacramento?

- Kamal

[Jamie Shah]

@Kamal Sharma with a 50k down payment, it will be difficult to find a property that cash flows. At that amount you’re looking at purchasing a property in a C- neighborhood that will be difficult to manage. Every town has these areas, I would just recommend to nail down your investment strategy and goal. If your goal is cash flow, choose out of state.

An an approximate $300k property, you are looking at 75k down (25%), not to say you couldn't find products with a lower down payment requirement. But if your goal Is cash flow and investing in California and considering a 5% vacancy reserve, 5-7% repair reserve, 5-10% property management, you are not going to cash flow with a low DP. You may with a 30% down. Again, this is just assuming vanilla MLS deals.

Tracy, Lathrop, Sacramento are tough for this strategy. Maybe Stockton or Modesto might be ones you could consider. All towns have rough neighborhoods and you want to make sure you have a good RE Agent and Property Manager that you trust, that can steer you away from things you wouldn’t ideally know if you’re not local to the neighborhood.

Hope this helps.