The demand in San Francisco is stagnant, rents are down up to 25% and no new renters are coming into the city. Not the best time for the rental market.
What's everyone else dealing with?
Trying to find what I consider an "acceptable" deal. I can't quite wrap my brain around the prices I'm seeing in my area (Central Valley of California) with the rent control laws that recently came into being. It will take YEARS of raising rents at 8% at a time to get these properties to numbers I'm "used to", but prices keep going up.
I'm clearly missing something in terms of ability of being able to turn renters over or increase rent prices or something... I just don't see how people are cashflowing these properties (or hope to in the next couple of years).
@Chris John , California's RE market has been a tough market for RE investment for quite a while now. I wonder if other investors in CA would have a good advice for you.
One of my friends who is a Rental Property investors tells me he's rule is only getting property that's 5%+ Cap Rate. But I guess that's pretty basic here.