First time rental property crieria

[Deepa Jan]

As I am actively working to get a new rental property, I am trying define what I am comfortable with as a first time investor. 

Would love to pick your brain on these questions.

1) How important is a good school district for rental / +ve cashflow house ? I find myself looking for houses in good school district only and find it hard to get a good deal obviously.

2) What do guys think of houses with swimming pool ? I am worried about the liabilities. What have been your strategies to manage liabilities ?

3) Is a house older than 1970 worse off from investment perspective ? How should i draw the line on the age of the house ?

4) Is 3Bed 2 Bath the classic SFH rental one ? What if the bath was 1 or 1.5 instead of two ?

I have spent way too much time looking for good deals in Fresno, Stockton area and I am realizing I might been looking at wrong places for the current environment.

5) Where are you guys investing with a positive Cash flow ?

I know there are lot of questions, but appreciate a good discussion here.

Thanks

Deepa

[Dani Beit-Or]

Hi, 

1 - there are so many variables that make it hard to answer this one. Also, your risk tolerance and available funds. Personally, I rather buy at a better school for a bit higher price on the expenses of cashflow - but that's one way to go about it. 

2- I try to avoid liability, and additional maintenance cost, and also the local municipality may demand from time to time to add more safety features and make changes that I can't avoid and it will add expenses. 

3 - there are many factors at work when choosing a property. Age is another factor among many to consider. I like 1980 and after but have looked at no older than 1960.

4 - 3/2 preferable. 3/1.5 could work too

5 - I live in Ca but invest out of state. in much healthier and stronger economies than you mentioned and where it is easier to find a 3/2, 1990+, w/o a pool, in good schools, that will generate a positive cash flow after expenses and mortgage payments and in states that are landlord friendlier. 

My suggestion: Id 3-5 possible ones and try to compare them one to another instead of trying to find the one. AND keep in mind there is no perfect home. You'll always need to compromise on something such as age, price, schools . . .

Good luck