Tulare - RE Investment?

[Paulina L.]

Hi all - I am looking to house hack on multi-family property for my first RE investment. I'm interested in Tulare county, as I see a lot of pop growth, good school districts, high renter %s, and a lot of new construction coming into some of the areas. 

My only concern is that when I run the deal analyses, I'm usually seeing a loss on COCROI. I'm thinking it's likely because even though renter % is high, it seems like the rent people usually pay in the area is still relatively low. Any thoughts on Tulare county as RE investment location?

[Travis Beck]

Paulina,

I think you’re right on track with Tulare county being a growth market. I’m from the Central Valley and we are seeing lots of expansion right now because of our affordability compared to So Cal, Nor Cal, and Coastal Areas. I do think the rents are lagging a bit and of course todays interests rates really put a damper on cash flow but there are still cash flowing properties out there. What data are you using to estimate market rents? Have you considered rate buy downs to help cash flow? If you’d like to discuss more please give me a call and I hope your able to find that next investment.