All Forum Posts by: Perry Z.

Hi there,

I am new to contracting. Are there good books to read about different parts of the house and the various estimate repair costs? 

Thanks,:)

Perry

I have a friend who just purchased a 300k SFH (3bd, 2b) in Elk Grove, a nice suburb of Sacramento, and is renting it for about $1500 a month. He told me that every month the rent broke even with the mortgage and expenses, and at the end of the year he probably puts in about $300 in property taxes + fees. Basically, at the end of the day, his return comes from the appreciation of the house, which is currently at 5+% in that area for that kind of house and the rent increase next year.

When I heard this I am a bit shocked, because my strategy is completely different. I would buy something around 150K 2bath/2b in lower income neighborhoods in Sacramento, rent it for $1000 and maybe even $900. With property management fees I have about $100-$200 a month in cash flow. Those properties probably appreciate at the rate of 2-3% a year. 

What do you guys think?

Cheers,

Perry

Hi there, :) 

I recently read this: https://nextcity.org/features/view/reno-tech-indus.... and became interested in the region. 

Wondering if anyone here invests in Reno and live in the Bay. (4.5 hours drive). 

@J. Martin

Gotcha! Oakland and Richmond def qualified the commute + buildable land criteria but I can't make the numbers work to show it's cash flow positive. I am looking at 200k but they all have HOAs of 190-300. Some need fixing. We have to rent them for $1600+ to be cash positive - but that doesn't seem to be the case in my experience. What do you think?

For instance, the rental prices on these properties http://redf.in/1HBx0UC would be less than $1500 I think.. 

@Garrett Mayo

One qq: What about Modesto and Stockton is it because distance you didn't invest in those or more of its economic prospects? 

@Garrett Mayo

Thank you!! Researching Fresno/Clovis CA now! 

@J. Martin

Thank you for the recommendation! :) 

@Account Closed

Thanks a lot! Sounds like you are investing mostly in the midwest now? Where do you think are good areas in the midwest? 

Just a place for us to share what rental property markets YOU would invest for cash flow right off the gate. :)

I'll start:

Milwaukee, WI - 3b/2br rents around $900-$1000. Properties less than $100k. Yearly rent to price ratio around 9% conservative estimate. Great deal! 

@Trevor Ewen,

Gotcha! Thank you!! I have definitely have a few close friends in Texas (Houston and San Antonio) - are they cash flow positive properties? I see a lot of great houses (3+/2) for $120k, but with property tax my cash flow is around $100-200. And I heard it's easy to have vacancies because of the level of supply. How about midwest or less hyped areas such as Milwaukee, Idaho, or Salt Lake City? What are the rental property markets you would invest in? :) 

@Account Closed

Thank you! How do you recommend I get started with out of state investing? Did you use turnkeys? How often do you visit the area? Are the $400 plane tickets worth it once every half year? What about San Antonio or Houston? (I've seen many cash flow positive properties there even with the property tax).