Newbie from the Bay Area

[Account Closed]

Hi there,

I'm hoping to buy investment property that will cashflow and need to decide between investing close by in Richmond, CA or buying out of state. Richmond appears to be overvalued and has also recently enacted strict rent control and eviction policies. It is also known to have areas of high crime. I don't have a ton of cash for a down payment so turnkey properties are looking better everyday. Any and all advice is welcome! Thanks!

[J. Martin]

@Account Closed also owns some property not far from my 4plex in Richmond. Maybe he can chime in also..

Elizabeth: "Richmond appears to be overvalued and has also recently enacted strict rent control and eviction policies. It is also known to have areas of high crime."

OVERVALUED: By which measure? Some of the most affordable $/sq ft in the SF Bay Area, especially when considering that you can hop on BART and get most places quick.. It's gone up a lot, but still the best rent ratios around also. I frankly think most real estate is overvalued in the Bay Area right now, but I think Richmond is not especially overvalued relative to the others. I saw a deal the other day on the MLS that I might have made an offer on if I was in town..

RENT CONTROL: Btw, the rent control is not in effect in Richmond, although it will probably get passed on the ballot in November I am predicting.. The prior council resolution was repealed..

http://patch.com/california/elcerrito/city-council...

CRIME/REPUTATION: Also, I thought it was funny the other reason you gave was the reputation.. How much time have you spent in Richmond? Walking the streets? Talking to neighbors, postal guys, corner store guy, beat cop..?

**The reason  the rent control and crime/reputation comments made me chuckle a bit is because it's what people have HEARD about Richmond. And the truth is mixed.. But most who have heard various things about it and written it off, haven't spent much time in it. Maybe you are the exception..

FERRY SERVICE: Ori, watch out how much faith you put in the ferry service. They have a difficult time with ridership justifying it, especially during economic downturns where ridership falls significantly.

Berkeley Global Campus will be huge, but being built over 30 years I believe.. Should be good for furnished rentals, Marina Bay, and that whole surrounding area ;)