I am newbie to the forum and greatly appreciate the knowledge on this forum.
I am interested in buying Condo or small multi-family (2 units) properties in San Bernandino County, California. Does anyone have experience investing in this market?
My main question is about the rental market demand, what are better cities to pick from - Redlands, Loma Linda, Colton, San Bernandino.
What price point shd b considered good, would I be better of investing in SFR ($200k) or condo ($100k-$140k), In any case my cash flow would be $100-$200
I am interested in one ppty - I have to give an offer to the seller, not sure how low can I go based on the listing price..can I offer 20% down the listing price or would it be too low?
Please pls advise, this would be my first investment property.
Hi @Karee Sh !
Welconme to Biggerpockets!
Welcome to Bigger pockets. The first thing you should do is research the market. If this is mainly an investment property for yourself make sure you research the area. Know the vacancy rate, unemployment rate, how much the area appreciated in the past quarter, past year, 2 years, and even pre GFC value. If you are looking into investing making sure you understand the demographics in the area as well.
I live in a gorgeous house in Point Loma but I am renting and It would make no sense to me to purchase a home like the one I live in as an investment because the cash flow would just be too low and let's say the property goes vacant I would be in the red.
Look into why the market is attractive to continuously have a tenant and see your home increase in value. I personally look into the infrastructure of the area, population growth, unemployment rates, home owners to home renters, vacancy rates, medium income and so on. Another aspect is making sure there is a reason why people staying or even moving there such as new jobs, amenities, parks, etc. If your investing on your first property as a nest egg make sure it feels right. As Warren Buffet says "Never jump in with both feet"
BP is a treasure chest full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.
Have you been pre-approved for a mortgage? That is the first step prior to putting in an offer on a property and will let you know what your maximum price would be.
Do you have an agent? That would probably be the best way to figure out the price you can offer. What are the comps in the area compared to the listing price? You can have a local agent check or you can view on sites like zillow.
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