Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 7 years ago on . Most recent reply

User Stats

52
Posts
12
Votes
Sheeva R.
  • San Jose , CA
12
Votes |
52
Posts

Buying a new townhome in San Jose - good investment?

Sheeva R.
  • San Jose , CA
Posted

Hi everyone,

I am asking this question for a family member who is thinking of buying a new construction in Northern San Jose. The purpose would be to maybe have it for retirement in a few years (or at the very least have a good investment for the future) and to rent it out in the meantime. The issue is that obviously properties in SV are extremely expensive and they will be taking out about 300k to put for downpayment. On top of that, the rent wont cover the mortgage so it will be cash flow negative for some time. The question is will the appreciation outweight all of that and I don't know the answer to that. 

What do you all think? I guess the question is with that downpayment money are there better investment options? Being 2k cash flow negative every month seems hard to stomach but again I don't have a lot of experience in this area.

Thanks for all the insight!

Most Popular Reply

User Stats

1,320
Posts
1,059
Votes
Diane G.
  • CA
1,059
Votes |
1,320
Posts
Replied

@ albert 

@Albert Ng - $2K negative is sooooo easy these days... Buying in Sunnyvale these day, $5K negative per month... yes, that is right.

Loading replies...