Most investors from local to out of state or the country buy up in Atlanta MSA as they feel most comfortable with the economics.

~200k in the Humboldt area, to be precise - at that price range I don't think it'd be economically feasible, and we haven't got that sort of money in the first place.

Yo can find out if taxes are current at the assessor's office.If taxes are current and the property is no longer listed I'd guess, if they have lived there for 30 years that they got past the crisis and probably not interested in selling, but you could ask. :)

In other words, if one would pay all cash for this unit, he would get 10% on his money, annually, which is not bad at all.Of course, there are many other variables to take into account.Stability of the area and the tenant, condition of the property, and the general neighborhood's economics and employment situation, to name a few.You can even lower the net to 70% instead of 75%, and still end up with a very good cap rate of just under 10%.For Southern CA property, that is a very good return.Do the math, even with 11% down, and 4.5% bank loan you will have a good cash flow (I did not do the math for this part, will leave it to you from here).Buy it.Amir

They can agree to whatever, for example, at 80% of the loan but I doubt you get it on a small motel like that, such deals kick in at higher amounts and bond financing, economic development and tax credit developments that use non-recourse financing.

Age of a property can also be an issue, the economic life must be greater than the loan term.

Congrats on your deal and there can be some great economic development financing out there.

The weak economic fundamentals really concern me and I fear another major crash may be headed our way.On the other hand, well-chosen investment property can provide you with very good returns.Continued success!

Another thing to think about is that since these are rentals that we're talking about, the upkeep of the property is pushed to the firms as opposed to what we had during the previous crisis in which the home owners were responsible for the upkeep of their house.

Because of personal economic uncertainty.