All Forum Posts by: Account Closed

@Nadine Lajoie You must not of read the post correctly. I am not counting soley on 10-15% yearly appreciation (even though it has happen YOY for the last 9 years) I am investing in positive cashflow properties in Northern CA under 100k with the bonus of appreciation. 

Many investor are very happy paying me a finders fee/ assignment fee because they are getting 10-12% ROI net + YOY appreciation of 10-15% sometimes more.

@Mike Palmer Northern CA. Sonoma, Mendocino, Sonoma, Butte, Sacramento Counties. I just recently bought a 3/2 SFR for 80k/ 8k rehab/ 125k ARV/ Now currently renting for 1050.00 a month. Plus 8% yearly appreciation average which is the historic average of appreciation in CA. ( Appreciation = Equity )

This homes were 40-60k towards the bottom of the market crash 07-08

Make sense?

you can invest in your own state 3/2 homes for under 100k plus you gain the yearly historic average of 8% equity ($666 monthly cashflow on 100k)

Grey is definantly the new beige. I recomend all the colors requested above. With the greys, It leaves room to bring in your browns for the floor colors. Classic white trim and white doors with black knobs have all been trending for the last 5 years. Stick with what sells.

This post was not about Cashflow vs. Equity. This post was to enlighten CA investors that there is CURRENT properties for sale with positive cashflow at 1% or greater along with appreciation of 10-15%. If the market does dip I still have the positive cashflow to ride the cycle out. As @Account Closed stated the CA markets have constantly risen decade after decade even with market corrections.

@Leonard L. I am currently buying properties with these same figures as stated above and will continue to post all my deals. I have just purchased 3 this year all positive cashflow with the bonus of equity gains of 10% plus.  Thats yearly 10%+.  My properties purchased early after the crash has risen in equity 40-50% since the bottom of the market and still not currently at there peaks of 2007 when majority of CA have surpassed there peaks of 07'. 

No one can predict the future but I can predict that they will be higher in 10 years than they are now. 

I have one questions to all you guys debating this. If you only purchase for cash flow, is that not a long term strategy? If so, then why would you worry about a market correction if the market will always return and be worth more in the future.

@Thomas S. mentioned "Cash flow is how I pay my bills, appreciation is how I build wealth."

@Account Closed I can't share the exact locations or cities of my properties but I can tell you that they are out there in Sonoma, Mendocino, Sonoma, Butte, Sacramento Counties. 

I am always open to the idea of a JV a deal, but these properties listed above are buy and hold. I have fix and flip deals but I like to enter in at a higher entry point in better areas with higher returns

Wether its a 2 million dollar home or a 100k home the price for any rehab is usually the same cost, depending on materials used. So as you can see I would rather invest my dollars into something that get higher flip returns. Somewhere in the 75-200k range ideally with properties around 600k selling for 900k.  Properties that can give me a 25-40% return on my investment 3-6 month turn around

Im tired of reading about all my local CA investors wanting to run out of state for so called "great cash flowing properties". I have purchased (along with some of my investors) over 2 dozen SFR and MFR positive cash flowing properties, within the last 3 years, with instant appreciations over 25% and yearly appreciations of 10%+. I will begin to document these stories from past and future investments moving forward. I have never really posted my success stories on BP mainly because I don't really have the best creative writing skills or bp vocabulary to keep up with you guys, so please bear with me.

IMO, equity is king and cashflow is a little bonus on top. Yes cash flowing properties are always good but the $100-400 a month positive cashflow is nothing to a 10%+ yearly equity game. These out of state markets with little to no appreciation offset your income so greatly that your missing out on the appreciation of Northern California. Even worse, a capex can set you back 2-3 years of all your positive cash flow. So for all you looking to buy out of state because it is cheaper than CA here you go.

Deal 1 

SFR 3/2

Purchase price 60k (cash)

Rehab 10k

Appraised ARV 3 months later 103k

Currently rented at 1,000

15% Yearly appreciation since 2013 and still hasn't reached its peak of 2007.

Yearly profits 45,000  including equity gain

Yearly profits moving forward 27,450 including equity (not including yearly rent increase)

You can do the math anyway you want this is a great deal. Wether you were going to do creative financing, conventional loan or pay cash as I did. I will admit that tenants must be screened good as there is many rift raft around the county but there are also many great tenants as we have found. Just need to do your due diligence as on any investment.

Deal 2

Duplex each unit 2/1

Purchase price 150k

Rehab 1k 

ARV 200k

Currently rented at 1,700

12% Yearly appreciation since 2013.  This years predictions are the same 

As you can see on this property doesn't have the greatest cashflow but still meets the 1% rule Didn't need much rehab at all besides landscaping. One unit is fully remodeled and the other needs a rehab of 6-8k but rent would also go up $100 a month after rehab. This was an instant equity play which helped in my decision process.

I have many many more but don't want to run this post to long. The investments are out there in CA my friends just look for them. Im getting 1% rule easy and expecting a minimum of 10% yearly appreciation. I see these out of state investments 60-100k. Imagine if you had the extra $850.00 a month equity on those properties. I would always be willing to sacrifice a little cashflow for equity any day. The equity gains are much greater.

I know I will hear a lot about equity is not guaranteed but nothing in life is guaranteed. We make these investments on sound research and numbers. Thanks to the BP community we are all here to help you make the best educated and strategic decisions. 

More to come with pictures.

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@Joe Bertolino I would love to come join you in Central park areas where I already own a few but I don't think that is considered the Oak park area is it @Derek Daun? I thought the North side of Oak park pushing 300k and Central pushing over 200k easy. All prices i was referring to was for a 3/2 SFR. Yes I have seen 2/1s for cheaper but are there areas around there that are under the 6 figure numbers. If so is it even considered Oak Park?

North, South or Central Oak park still have not seen anything under 6 figures as your talking about. Are you getting these off market deals @Joe Bertolino

@Gordon Cuffe Please send me anything you got 3/2 in tahoe park under 275k Ill take it along with Oak Park under 220k.

I just don't see where you guys are getting your info from? Please explain if I am way off base

Isnt Oak Park in the low to mid 300s? Was that not peak market prices in 07? I thought he was driving out there looking for cashflow properties, did i mis understand the thread?