While we are on negative cash flow.....

[Diane G.]

This is a 3/2 for 1508 sq ft in Los Altos, CA....

[Arlen Chou]

@Account Closed I realize that works out great for you, but your comparing "apples to oranges" in terms of markets and the effects of taxation on investors.  What are your property taxes on your unit and how does it change from year to year?  In California we have prop 13 which limits the effect of property taxes over time.  Additionally, California has high state income tax vs Texas not having one.  If you had to pay Texas property taxes and California state income taxes would your numbers be as good?  How about adding in the headaches of property management and cap ex on 32 units vs 1?

The subject property is in California and it is inferred that the owner is also.  If a California investor were to take their money out of their home state and put it into a high property tax state, AND pay income tax in CA, that investor would be shooting himself twice.

I would argue that smart people will make tax consideration as well as time/resource management key parts of a well rounded wealth accumulation strategy.