Best Places for Buy and Hold SFH Strategy

[Ryan Chaw]

Hello All. 

I was wondering from everyone's experience with buy and hold single family home properties, what cities in California have you seen the highest return? 

I am looking for cap rates of 8% or higher and positive cash flow (meaning the mortgage monthly payment is covered fully by NOI) off a 15 year loan with 20% down.

Let me know if you guys know of any. From what I hear, based off the Bay Area housing market prices, it is very hard to establish cash flow.

Thank you,

Ryan

[Russell Brazil]

There is no such thing as the best (or worst). There is merely the risk of the asset measured against your risk tolerance. If you are looking for an 8% cap rate, that tells me your risk tolerance is on the higher end (or do not understand that cap rate is not an indication of return, but is an indication rather of risk).