All Forum Posts by: Juan Mendoza

I just got the home inspection back and there is a long list of hidden sins. I'm pulling my offer!!

Hau, I hear what your saying and its really a tough decision.  I've looked at other properties and its just difficult to find a nice turn key property in a nice neighborhood and in a good school district.   There are homes that are listed for less but I would have to put some money into them and those homes are not in the best of areas.  I do believe the market will level off but I expect growth to continue a little while longer.  One other factor that I've not mentioned is the bullet train being built which may change the market a bit but that is a ways out there.  But again this is a long term investment and rental market looks pretty good.  

Jeff, I looked at a 4 unit but was a little bit apprehensive of the renter market mainly because of the fact of where they were located.  Do you have a list of a couple units I could take a look at?    BTW I appreciate your insight.  

Jeff, I decided to go ahead a pay for the home inspection which covers the roof and the AC.  I'd rather know now than later.  

Hau, I hear what your saying about negative cash flows and I too ran the runs. It does scare me but homes values are still going up. I'm curious where do you think Fresno Co. housing market is going? Does it have a potential for long term growth or do think housing prices are going to take a dump again? 

Ingrid, no the fulfillment center will not be right across the street.  But  a top rated school district is.  Speaking with first hand experience, I moved from one location to another simply because of the prospect of better schools my kids could attend.  In regards to the fulfillment center, they have already broken ground.  What's appealing here is the number of jobs they will bring to the Central Valley.  Those people are going to need places to live, increasing the demand for housing.  

Yes, taxes are included in the loan. Without taxes and insurance the mortgage payment is just under $900.  The property is turn key, updated with laminate flooring, tile throughout, with new paint on the interior and exterior.   It really looks great at this price point when compared to others. I am having a home inspection done to ensure everything is in good working order.  My two main concerns are the AC and roof.  The home inspection should uncover any sins the property may be hiding.  If there is too much risk then I will back out of the deal. The rental market is pretty strong and homes for rent are not staying on the market very long.  I thought about having a property management company manage the property but I do believe this is something I could do on my own and utilize on line screening services as well as checking local evictions public records. 

I forgot to mention that there are several new developments being built in the area one of which is being built not to far from this property.  The property value has increased dramatically over the past 5 years, 100K.  Zillow and Trulia both estimate property values to increase at approximately 7%. I do expect it to slow down considering the new developments.        

Hello everyone I'm excited to be a part of this platform and I'm looking to buy an investment property.  I live in the Salinas CA and medium homes are priced right around $450-500K.  The way the real estate market is in this area I don't believe I could make it work and feel as though I've been pushed out.  I've decided to look outside of the area and found the Central Valley to be most appealing due to job creation.  From what I've read Amazon had broken ground on a new distribution center in Fresno.   In addition, depending on where you buy the schools could be pretty well rated.  I spoke to my lender and was pre-approved, I now have the ability to purchase an investment property and have the required 20% down.

My wife and I have been searching for an investment property for while and have decided to make a move. I didn't know anything about DP before we started looking at investment properties. I did however do some research and started learning about CAP Rate and Cash on Cash rates. Since I have a little extra cash I thought I it would be a good idea to make it work for us. As I mentioned I'm new to this and want to make sure I'm making the right decision. Any feedback would be greatly appreciated. I thought about buying a duplex or multi-unit in the Fresno'Clovis area but most seemed to be located in areas that were less desirable. Given my full time job I really don't want to have to deal with those issues.

After much discussion with my wife, we decided to look at homes.  In doing so we went from one realtor to another because he seemed to drop everything just to earn our business and showed us what was on the market.  We took a look at a couple of homes in the Fresno/Clovis area some of which were better than others.  He had just finished an open house for one of his clients and asked us if we wanted to take a look at it.  We took a look at the home and it seems to meet the criteria we are looking for; its in a pretty decent location and within the Clovis Unified School District.  The home is pretty much turn key and has been updated.  You could really tell the home owner really cared for the home.  Anyway they are asking 240K which is below our pre-qualification amount.  The agent has agreed to dual representation at 4.5 points.  

After speaking with our lender the estimated loan would be about $1100 with PMI. I researched rental rates for a similar homes in the area and found them to be between 1300-1600. I figured I could rent this home for about $1550. With that said we have decided to submit an offer at asking price. As of today It looks like our offer has been countered. The seller would like to stay in the home longer and is interested in renting the home from us for $1500. In speaking with our realtor it looks like we could still close with the acceptance of the rental and not have to make a mortgage payment for two months. We would however collect rent from the seller for those two months. Our realtor further advised us that the seller may need more time and would rent from us until they find a new home.