All Forum Posts by: Tony H.

I went to Sac area over the weekend. Looked at several properties. None of them would yield positive cash flow. The house rents were so low that it does not make any sense to me. I decided to settle with a zero cash flow property in Rancho Cordova and hope for appreciation. I saw the area is having a lot of growth! We'll see what happens.

Aries Li have you found success with your strategy? If so, can you give me an example.

@Alex Graebe I am on the same boat as you. I have all similar questions like yours! haha.

I live in the Bay Area and is looking to invest in Sac area. I have done a lot of calculations for like 100+ properties with a mix of SFRs, MFRs, and Condos. I agree with Wes, that MFRs yield better cash flow.

After learning so much on BP, I think I have my answer on the whole purpose of my investing pursuit. I have to accept the fact that hoping on a good cash flow is going to be hard. I dont want to get properties in a class B areas unless it yields a VERY good cash flow. So far, I dont see any.

With that in mind, I think I will settle with a class A with a "A" Tenants who won't give me much headache and stress. I live 2-2.5 hours drive away. I certainly not want to deal with problem tenants that I have keep going back and forth.

In the back of my mind, as long as net cash flow is not negative, I should be fine. I'll just wait for appreciation and the house pays for itself.

I maybe wrong in all these, so, I am waiting for others to chime in as well.

I am going to Sac area tomorrow to see my agent and have a tour of the areas.

Good luck!

Hi Chris Mason Sorry i am newbie. What is MFR? Is it manufactured homes? If so, the answer is no. I am leaning towards duplex or triplex. Or maybe a condo/sfh if the cash flow rate is the same.

Hi BP! My name is Tony from Newark,CA (sf bay area). I am new to the community and I learned a lot! I own a condo in newark and it has been having a nice increases over the years. Just recently i had a thought if tapping into my equity to buy an investment property outside the bay area. The property prices here are outrageous now. I have been thinking to invest in sacramento areas. However, i did a few research, including other suburbs, it looks like there is no way to get at least 1% cash flow. I have 2 goals that I know I can only get one or the other. 1. Get a investment property with a very nice cash flow to help me payoff my primary residence quickly. Or 2. Accept the fact of close to zero cash flow and hope for the best for appreciation. I am still debating between the two, but I am leaning towards goal 1. My reasoning: I am using Heloc that is tied to my primary residence as collateral. If housing market crash, i would lose a lot if not all that and my primary residence will be in "danger". Am i wrong to think this way? What should i do? Thanks BP!