Long term hold, where to buy

[Linda S.]

Hi,
I've been reading and reading and still have yet come to an answer.
My goal:
- Better return (my saving are in stock, mutual funds, some in 2% CDs now)
_ Buy for hold, potential for appreciation, reduce my regular engineer income tax
- Rent it using PM (I am in Redwood city, and it looks like my investment won't be in a near by town. I also have full-time job and mom of 2 young kids)
- Been looking into Sacramento, Roseville, Tracy, Manteca (using redfin, craigslist)
Should I buy in these areas to be somewhat close by?
Should I do turnkey out-of-state? Looked at MemphisInvest as some suggested.
Haven't seen anything even close to the deals mentioned.
I am very flexible, just want an investment strategy better than what I have now.
Appreciate any help.

[Marco Santarelli]

Hi (again) Linda Steedman,

Don't expect to have answers to all your questions overnight. It takes a little time.

1. Personally, the stock market, and most paper assets have me very concerned. I don't think they have a bright future with the economy and government policies in place today. Real estate will almost always give you better net returns than virtually all of those other "investments".

2. Real estate can provide you with all three of your intended goals (cash flow, appreciation, and tax advantages).

3. I always advise every client to NEVER manage their own property. Even if you have prior experience, and understand all the related State laws, I believe you're better off remaining detached from the tenants and focusing on your life, career, and/or finding more properties.

4. I don't put a lot of value in Craigslist or Redfin. These are not highly targeted sites for real estate investors, and they do not provide good tools or information needed for you to invest.

5. The best deals are usually not in your back-yard. that's why so many buy-and-hold investors chose out-of-area markets to find the best deals and get the best returns. Being close to your property does not make the deal better!

6. My opinion is to check out a few turnkey providers (not just my company) and compare what they offer and what's in it for you. I'd look for a "complete solution" that can take you from strategy all the way through to closing. It's not just about the property - consider your investment goals, value added services and the contacts they can provide you now and in the future.

Continues success!