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All Forum Posts by: Hwan Kim

Hwan Kim has started 1 posts and replied 4 times.

Quote from @Alecia Loveless:

@Hwan Kim If you find deals that work today with the rates you are currently getting then there’s no reason not to invest now. However don’t buy negatively cash flowing deals, that’s not smart. Even if you think they’ll appreciate, there’s always the possibility that the market will drop and your value drops and there’s little to no appreciation.

All deals must positively cash flow in most investors opinions.

When you say "cash flow" I assume you are considering everything from maintenance, tax, insurance + 7% mortgage? I am gonna have hard time finding one haha 

For the first option, I anticipate paying a higher interest rate, but I believe there may be fewer competitors in the market presently, potentially leading to good deals. Additionally, I assume housing prices are to rise (if they haven't already) once the rates start dropping.

On the other hand, with the second option, I'll pay less interest but I anticipate a surge in demand as many others may have the same idea and wait. So when the rates do drop, there could be a significant uptick in competition. Nonetheless, I also suspect there will be more supply, which might help balance out the demand.

I'm curious about the perspectives of others on this site regarding this matter

Post: SoCal Native Starting Out

Hwan KimPosted
  • Investor
  • San Antonio, TX
  • Posts 4
  • Votes 2

@Peter Mckernan, @Dan H. 
I completely agree with all of you. The original poster simply wanted to know about high cashflow investments, so I provided that graph. In the long run, I also think that focusing solely on current high cashflow is not the best strategy. Thank you for your inputs!

Post: SoCal Native Starting Out

Hwan KimPosted
  • Investor
  • San Antonio, TX
  • Posts 4
  • Votes 2

Hi Nick,

I live in WEHO and have been actively seeking rental property opportunities in the Southern California (SoCal) area, just like you. If you're interested in high cashflow properties, I'd like to point out that SoCal might not be the optimal choice. According to the ACS 2021 data, the return in the LA/Orange County area was approximately 2% (likely even lower now). While Bakersfield and San Bernardino do offer slightly higher ROI, it's well-known that these locations might not offer the best quality of living.

In my opinion, Las Vegas and Phoenix present relatively better options. They have affordable flight prices(from LA area) and better ROI.