All Forum Posts by: Rohan Desai

All,

I am looking to buy a single family home in Almaden or Fremont Mission in the 1.7-2.1m range. Which place do you think has a better potential for appreciation? And what are your thoughts on Pleasanton? Thanks in advance!

Thanks all for your feedback!

Thanks for your replies. My PITI is approximately $2950. HOA is $280. I am also considering hiring a property management company, which would cost about $200 (assuming 6%). I expect rent in the range of $3400-$3600 for the 2 bedroom townhouse.

Sam - I do see your point. There are couple of considerations: There is a lot of commercial construction around North San Jose/North Santa Clara area especially around Great America Parkway. That keeps me optimistic but at the same time there are lot of new condos flooding the market which would continue to pressure the rental prices. 

Sam - what report/data source do you use to track the rental market trend (i.e. prices, demand) in silicon valley?

BiggerPocket Community - I live in the heart of Silicon Valley (Santa Clara) and own a townhouse. We are looking to upgrade to a single family next year but I am debating whether I should rent my townhouse or buy a property outside of Silicon Valley or California where I could get better cap rates. With about 50% equity in the house, I have close to 0% cash-on-cash ROI and 2.37% Cap Rate which is standard for the area. Given the low cash returns and cap rate, the only potential upside to keeping this property is the appreciation and strong rent growth (>3%). Here are the options I have:

1. Rent the townhouse

2. Sell the townhouse and invest in another property with better cash-on-cash ROI and Cap rate.

What do you guys think? Thanks for your time!