Single Family Resident

[Jake Delosreyes]

I am new to REI and I am located in San Diego. What are you guys opinion on investing Single Family Home? I know market is tough right now but can you guys give me an advise. How do you analyze single properly and what are you looking for? Thanks in advance.

[Thomas S.]

You will not likely find a single family that will have any positive cash flow if real estate in your area is over priced compared to the rest of the country. Home buyers have very little common scenes when valuing a home purchase and  being your major competition you will buy above a reasonable level. Rent to value ratios will not work. Equity value through DP and appreciation will put you deep into negative cash flow.

Find a multi unit that will be lower risk having multiple tenants. With luck your market will value them based on cap rates.