All Forum Posts by: Taylor Bauer

California is beginning to become a wasteland for anything economy wise. I don't see that changing. You really should look into the midwest, upper midwest and even states like Idaho, South Dakota and Wyoming. Great deals. Great properties. Low taxes and regulations.

What about the south?

The south can be good. A lot of people like the Carolinas. Georgia even. Oklahoma isn't the south but is solid.

Any thoughts on Tennessee, Louisiana, Texas?

0 Votes

Fresno, California

Quote from @Nate Marshall:

What about the south?

0 Votes

Fresno, California

Does the guideline for a monthly rent between 0.8% and 1.1% of the property's value include power, water, gas etc.?

I am currently looking at a few locations/properties though Zillow, redfin etc. to get an idea of the rent/cash flow potential in the surrounding areas.

If for example a home is selling for $225,000 it will have an estimate of $1,462/month.

With 25% down the calculator shows:

$1,023 per month

Principal and interest $806
Property taxes$125
Homeowners insurance$92

How can I get a better idea of the total including everything?

Or would you just rent it out between 0.8% and 1.1% ($1800-$2500), taking into consideration the surrounding areas rent, making sure it turns a positive cash flow?

0 Votes

Does the guideline for a monthly rent between 0.8% and 1.1% of the property's value include power, water, gas etc.?

I am currently looking at a few locations/properties though Zillow, redfin etc. to get an idea of the rent/cash flow potential in the surrounding areas.

If for example a home is selling for $225,000 it will have an estimate of $1,462/month.

With 25% down the calculator shows:

$1,023 per month

Principal and interest $806
Property taxes$125
Homeowners insurance$92

How can I get a better idea of the total including everything?

Or would you just rent it out between 0.8% and 1.1% ($1800-$2500), taking into consideration the surrounding areas rent, making sure it turns a positive cash flow?

0 Votes

Quote from @Account Closed:

Quote from @Sahil Rajput:

Hello BP community.

I am a newbie to real estate investing and located in the bay area. I am looking for my first deal around Freno, CA area (want to start local). I have spoken to few realtors. 3/2 SFHs are priced around 400k and rents are around 2.5k. I am looking at numbers and cant seem to have any cashflow unless I do a ~75% down payment. Is this the reality or I am missing something? For those who say we can still find cash flowing deals in Fresno, what are those strategies?

Your observation is very sharp. Based on the data you provided, it's indeed not easy to achieve positive cash flow. You mentioned a house price of 400K and a monthly rent of 2.5K If we calculate based on these figures, then your rental yield is only 6.25% (2.5K*12/400K)

(2.5K×12)/400K×100% = 6.25% Generally speaking, an ideal rental yield is around 8%-10%

Consider renovating and upgrading to increase rental income or using financial tools such as mortgages to optimize cash flow. However, these strategies require careful financial analysis and planning to ensure that you can obtain sufficient cash flow to cover your expenses and debts

Isn't it 7.5?

0 Votes

Fresno, California

All Forum Posts by: Taylor Bauer

Taylor Bauer has started 2 posts and replied 5 times.

Post: Cannot find cash flowing deals in CA

Post: Cannot find cash flowing deals in CA

Post: First Rental Property

Post: First Rental Property

Post: Cannot find cash flowing deals in CA