This is a question for which I have to define the scope: Investments, even rental income, can include 1-4 units, multi-plexes, vacation rental, college housing, build-small=home-on-vacant-land (my favorite), plus others. I’m defining it assuming a fixed income requirement, likely for a first-time investor.. So, will narrow it to 5-6% yield generating, low-maintenance 1-4 units. Given the above self-constraint, The answer is actually not really that hard, you can start trying to answer on your own: Look at areas around you that HAVE NOT appreciated, maybe where properties stay on market for more… Read More
I’m going to answer this question, assuming ‘value’ means appreciation value.. there is always value in a rental income property, SF Bay Area of anywhere else, but think the question most asked is about appreciation of a property bought for residential use.. Well… A no-frills answer is NO. As in values have gone up so much that (as of August 2017), if your prime consideration is upside, of a residential unit, I would like to think they have 5-6% more upside, but tough to get more. I know there are a lot… Read More
Firstly, It does matter how much you invest in the sense that without a minimum 25% down-payment or if the minimum isn’t in synch with your long term investment plan, you are at a disadvantage from the beginning.. But, the spirit of the question and the context it is usually asked is from first time investors, in California, asking what is the recommended minimum.. I’ll examine the question in that context. My advice is to not think the amount as small or big, but about the asset size you are taking on and… Read More
Along with cash or finance, related questions I get frequently are: How do I finance my investment? What rates can I expect (if I finance it)? Caveat: Although I have an active NMLS license (i.e Mortgage Loan Officer), I’m not a practicing loan agent; a precise answer to the questions above tailored to each individual are best given by a Mortgage Expert.. but, some principles I can point at from personal experience.. Firstly, the obvious answer: if you can afford to do cash, ALWAYS do so.. leveraging debt to do investments automatically adds… Read More
California real estate market over heated?