All Forum Posts by: Sri Mallur

I plan on buying couple of rental properties preferably SFH. I have focussed my search in northern california because I lived there but I am looking for ideas if there are better places. I use property managers as I currently live outside USA on an assignment.

Any ideas? I looked at Plano,TX, Houston but Cali seems to beat on long term property appreciation. I am looking to buy properties that will be minimally cash flow neutral with a long term appreciation.

I will appreciate any ideas.

Awesome explaination. Read up on 50% rule getting a better feel for it.

Will look out for all this in the next purchase.

Thank you

I recently bought the following property in Stockton CA in an auction. Can anyone help me understand if this is good deal. Waht did I miss? What should I look for?. I can use your advice in my next purchase
1) Purchase Price: 173250
2) Down: 20%
3) Loan Amont: 138600
4) Rent: 1500/Mo
5) Property Manger: 8% of rent = 120/mo
6) Hazard Insurance: 1375/Yr = 115/Mo
7) Flood Insurance: 348/Yr = 29/Mo
8) Property Tax: Assuming 1.4% = 202/Mo
9) Cash Flow: 100/Mo
10) Cap rate based on my calc = 7.16

Please advice and help me understand my mistake.

Vandana,
Take my response with caution (I am new investor). I live in California and with all the massive foreclosure I jumped in. In doing so I found the following
1) Each partner is considered as fully responsible for the entire loan (loan is not divided by number of partners)
2) Your rental income is considered as income to calculate your Debt to Income ratio and hence your new loan will be decided based on that information.

Hope this helps