All Forum Posts by: Sahil Rajput

I still buy in CA. It cash flows at COE. It is purchased with 20-30% DP and financed by local banks. That cash flow is generally 5% or higher at COE, factoring in vacancies, maintenance, management, and reserves.

Add bedrooms and or an ADU to make money in CA. CA Law allows for the construction of an ADU. You can rent it out. The interest rates are high now. The prices are high. But the money per room and bathroom makes sense. If you add 1,400 square feet you can easily put 3 Br/2 BA on it for $210,000. Your payment goes up $2,200 and your rent goes up $2,600. The property value goes up about $350,000.

Hello Sahil, 

Unfortunately that is the reality cash flow is hard to come by especially in this market. A few strategize people use to attempt to cashflow or at least break even is rent the house by the room instead of renting out to a family. Adding value to your property like an ADU/DADU but those also cost money to build so overall you still wont cashflow. The good thing is that at least your property will gain appreciation so its great for long term hold. Another strategy is looking at short term or mid term rentals thats one way to cashflow but it does take more work as your basically running a hotel business but once you figure how to automate things it will get easier at least thats what the short term rental investors tell me lol. Last thing I would suggest is to start with house hacking strategy where you buy a home as your primary weather it be singe family or 2-4 unit and rent out the other units or rooms. This is the best way to get started with lowest risk as you will only need as low as 3.5% -5 % down and you will also have a place to live. This is a great opportunity to learn a lot and make mistakes where you wont be sweating bullets.

@Albert Bui @Matthew Kwan

In a particular area in Fresno? I too am looking for my first deal and have seen quite a few for under $350k in Fresno 3 bed 2 bath.

Would it be over $400k what it is all said and done?