New to Real Estate · Irvine, CA · Member since 2018 · 6 posts · 0 votes
Hello all,
Which is a better buy? Both homes have the same price:
NE Fresno, zip 93730 is a rich area: Home is a smaller 3-bedroom SFR, though larger lot, associated with Clovis North High school, which is ranked 10/10.
Clovis 93619: is a larger 4-bedroom, smaller lot, gated community, associated with Buchanan High School, ranked 9/10.
Which is a better buy? Both homes have the same price:
NE Fresno, zip 93730 is a rich area: Home is a smaller 3-bedroom SFR, though larger lot, associated with Clovis North High school, which is ranked 10/10.
Clovis 93619: is a larger 4-bedroom, smaller lot, gated community, associated with Buchanan High School, ranked 9/10.
New to Real Estate · Irvine, CA · Member since 2018 · 6 posts · 0 votes
3y
I'm looking for a home that can serve as either. For my family size though, the 4-bedroom is the better option. But then I live in a 3-bed now in SoCal. Does NE Fresno appreciate better?
It's tough to predict variance in appreciation between two areas that have similar characteristics and are so close together. They're both on city boundaries so value appreciation has to do with both population growth and urban sprawl but should be pretty similar. Rental demand in both areas would be strong, so I wouldn't worry about your ability to find a tenant.
My worry is that if you decide to rent either place, your cash flow might be tight based on average rental rates in Fresno, relative to the value of the home.
I'm looking for a home that can serve as either. For my family size though, the 4-bedroom is the better option. But then I live in a 3-bed now in SoCal. Does NE Fresno appreciate better?
How is the rental demand in either area?
If it were me, I'd do this:
1. Contact a property manager local to the area and ask their opinion as well as give them the addresses so they can suggest what you would receive in rental income.
2. With the rental income, underwrite each property to determine cash flow without renovations (if any are needed).
3. Adjust your cash on cash return with with not only the down payment/closing costs, but also if there are renovations required.
4. Ensure you have enough reserves in the event maintenance is required.
5. Then begin to analyze appreciation by zip code. Ask are there jobs local? Is the local economy growing? What is the population inflow/outflow pattern look like?
After you've done those things above, you will have enough knowledge to make an educated decision. Real estate agents are probably not the best folks to get this info from, btw. Start with the property manager and then dig into the local economy on your own.
Real Estate Agent · Fresno, CA · Member since 2014 · 367 posts · 174 votes
3y
Hey Dalia, as far as appreciation goes these areas are both great and won't have any trouble appreciating, selling or renting. Those are 2 great areas inside 2 great school areas in Clovis unified. Both are highly desirable for purchases and rentals.
With limited info I'd say the 3 bed in 93730 is a bit better only because the other is in a gated community. The HOA rules for rentals can be strict in gated neighborhoods and it will also cost you some extra cash. Gated communities can appreciate less depending on the type of homes that are in there, because people in Fresno and Clovis tend to prefer not living in HOA's. However 4 bed rentals are hard to find so if the rules in the HOA are friendly to rentals the 4 bed may be better.
what size is the yard and lot? are either of the homes 2 stories? small lots (under 6000sqft) will not do as well and 2 story homes are not as desirable as 1 story.
If it's a 2 story home make sure the primary bed is on the ground floor, if the primary is on the second floor that may be a deal breaker as most buyers don't want to climb stairs as they get older and you will eliminate a decent amount of buyers/renters if the primary is on the second floor.
let me know if I can answer any other questions, happy to help!
New to Real Estate · Irvine, CA · Member since 2018 · 6 posts · 0 votes
2y
Thank you for the responses, everyone.
I have another question for locals: the Harlan Ranch area seems nice. But I am seeing it is distant from schools, about 5 miles. I am curious what kind of people live there and why would they rent there?
Real Estate Agent · Fresno, CA · Member since 2014 · 367 posts · 174 votes
2y
Hey Dalia, good question. The typical people that live out there are families, just like most of NE Clovis/Fresno. It's in the Clovis North district so there is a bit of a commute to middle and high school but the elementary school is in the middle of the neighborhood. People like that area because of its proximity to the 168 freeway, it's literally 2-3 minutes away and then you can get anywhere into Clovis or down to 180 very easily. Harland Ranch is a really desirable neighborhood but probably not quite as desirable as the other 2 areas you mentioned. For example if those other areas were a 9 out of 10, Harlan ranch would be 8-8.5 out of 10. The highlights are the fact that it has a large community pool, grass area and clubhouse. It also has Bud Rank Elementary school right in the middle of the neighborhood which is a big plus. The negatives of living in the neighborhood are it's location (it's really far east and can take a while to go west into north clovis and fresno), HOA on the entire area, and yard sizes (many homes have lots smaller than their sqft so they only have a courtyard but there are also plenty of homes with yards). Overall I would never encourage someone not to buy in Harlan Ranch as it's a great place with high rents and appreciation. Let me know if I can answer any other questions.