Newbie Investing in Northern California?
Hello all,
I'm a young professional with ~100k looking to invest in positive cashflow rental properties, ideally in Northern California. Currently located in the South Bay.
I've read up on some literature, and I know the basic formulas - I know what NOI, CAP, COCR, etc is, and am aware that average expenses are 45% of gross rents.
Through a casual look on redfin.com, it seems that COCR is pretty abysmal, even in lower-middle class neighborhoods (3-5%) even with 20% down. I have a couple of questions:
Should I be looking elsewhere? Ideally I'd like to be close to my properties.
Should I join REI clubs to find motivated sellers instead of looking online, where most people would look?
Is the 4.5% for a 30 year rate accurate for the mortgage I would be getting? (First time, non live in homeowner, credit of 680)
Seems dangerous to invest in Oakland, 5th highest crime rate in the US, I shouldn't touch it right?
Thanks a lot.
Darius