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Question

I have the ability to buy a home from a friend for 720,000 in an upscale community in San Francisco Bay Area. There are two active listings exact same models at 789,000. So essentially home is 70,000 under market or maybe not. Comps are from 780-802. I plan on renting it out for a year than moving in it. Does this make sense with current market conditions. New to the whole real estate game. Thank you

Ryan Ebersole · Answer

I agree that renting does not look to be your best option in this case.  I could add to that but I think that the others before me stated what I was going to say.

Jeff Takle · Answer

You should run this through the real estate tools here on BiggerPockets' home page. It will help you understand better where you gain risk.  While you'll never cash flow that place in San Fran as a rental, if you can handle the negative cash flows for a year it might suit your situation. It's never a bad time to buy a great deal.  Look at your cash flow and the up front costs of acquisition (closing costs, mortgage points, down payment...) and see if you can afford it.

Why don't you move into it right away?  Why rent it out when it's certain to have a HUGE negative cash flow and you intend to move there soon?

Abraham Cohen · Answer

you wont make money renting it out. just improve and resell