Newbie from Vallejo, Ca

[Doug Sherman]

Hi everyone. My name is Doug and I've learned so much reading the forums the last 2 days. 2% and 50% rules are VERY helpful. Thanks so much to the experienced investors Jon, MikeOH and all the others for sharing their knowledge. I'm looking to purchase a couple SFR to buy, rehab and rent for a long term hold.

My plan is to find SFR or a duplex that needs some light to moderate rehab. I was born here so I feel I have a very good idea of which areas look ghetto but really are OK. I was a construction contractor many years ago and still have all the tools and enjoy using them.

Here in Vallejo Ca. the fear is really running rampant. The city is in bankruptcy, crime is rising, police force is being reduced and the bottom has fallen out of the real estate market. The prices on some really good solid smaller 2/1 homes seem so low. 50K - 70K for purchase price and 1000 - 1300 rents. You really have to work to find one that meets the 2% rule but they are there. In the good stable neighborhoods where you have long term retired residents the best deals I can find run at about 1.7% (rent/purchase price). At this 1.7% level you can find homes where the previous flippers went through the home and made many, many repairs. new roof, new bathroom, paint, flooring and even some new kitchens. Pretty amazing to see all that value left on the table so to speak.

Anyway, looking forward to learning more. Love this website!