Tracy, CA · Member since 2015 · 19 posts · 2 votes
Hello everyone at BP,
Very excited to see the amount of knowledge sharing happening at BP. Hoping to venture into REI through this medium.
I am from bayarea California. Looking for rental properties with cash flow (not easy in bay area). What would be good counties or cities for atleast 1% income properties? Also, appreciate guidance in finding good property management as I would be heavily depending on them. Being new to REI as a whole I prefer properties with less work upfront.
I started looking at Austin, San Antonio Texas based on some of postings at BP. Open to any other areas.
Welcome to BP. Good luck with investing but just be sure you do enough research before you jump into out of state or even in state to area's you do not know much about.
Some times things seem greener on the other side than the reality.
I had a quick peek at Austin market but the properties seem to be pricey to me. Would love to know of neighborhoods where 1% of rent is possible. What is the usual CAP rate and COC you could expect in Ausitn or subs (I know thatz a huge area).
Yes if you can but a how for 806 and rent for 650 I can see how you will that much cash flow....
I would assume if you can buy for 800 why is the tenant paying 650 not buying. Just trying to make a logical sense thats all.
But what ever it is it looks like it working for you so congratulations.
The tenant had no idea it was for sale(foreclosure). She is trying to buy it from me and she has no idea what I paid for it.
The neighborhood is C/C- The much larger house next door is currently undergoing a full gut and remodel probably $45,000-$50,000. Would I live there yes but not my first choice. I personally know a multi-millionaire lawyer that lives about 3 blocks from there.
Hi Chendra! It seems you have some good investment choices within this thread. I saw Milwaukee was mentioned earlier and it has become a great place to invest. I know some buy and hold investors are meeting the 1% - 2% rule here. Also you could definitely get some solid inventory with your investment.
If you have any questions about Milwaukee, feel free to send a PM and I will do my best to help.
Yes, achieving the 1% rule in Austin and in the suburb is tough for single family houses. The prices have increased 10% from last year to the present and rents haven't increased directly proportional so achieving it for sfr is going to be tough. Multifamily such as duplexes are a bit different. There are duplexes on the market that achieve that 1% rule but even those are few. If one goes up to fourplexes it goes closer to the mark. But fourplexes are a totally different breed than duplexes and very very different than sfr as an investment. It depends upon your strategy. If you are a buy and hold type investor then I would advocate a duplex or better yet a sfr in above average areas. The 10% increase is the average thus there are some areas that are achieving superior price increases than the 10% and some areas that are achieving less than average price increases. Rents and prices have been rising slow and steady since Austin has been around for the most part. The rate of increase has changed from real estate cycle to real estate cycle but it has been slow and steady. We don't have the large price increases that you see in SF-Bay area for a number of reasons.
I am curious to know how the game for four plex is different from duplexes? Is it because four plex are usually built in C neighborhood? How about commercial complexes? I have been looking at multi unit properties as they are usually less cost per door to buy and seem to have better cash flows. I am not looking at distressed or foreclosures.
Appreciate insights into SFR vs duplex vs multi vs commercial.