All Forum Posts by: Tony T.

Tony,
Welcome to BP.
If you're looking for appreciation, I came across a recent article a month or two ago (data from Zillow) about the "Best City for Mom & Pop Landlords" suggesting that for long term gains / appreciation, the top 5 cities are:
1) San Jose $8900 / month long term profit
2) San Francisco $6000 / mth
3) LA $4300 / mth
4) San Diego $4100 / mth
5) Riverside CA $3600 / mth (I was suprised by this one).
I too invest out of state but those are purely cash flow plays.
Best of luck.

@Tony T.  Your OP sounded like you're looking in the Bay Area, especially since you emphasize capital appreciation. I dunno, but in my book $300k funds + capital appreciation = Bay Area investment.  With bank financing you can buy a $1 mil to perhaps $1.2 mil prop locally. 2-4 units somewhere up and coming. 

Where else are you going to get reliable appreciation, especially out of state?

@Tony T, welcome to BP. 

Do come to the meet up, it has been great the past few times. We have some very knowledgable people here.

NV seems logical, as it's just next door. TN? why TN, did you live there in the past?

I invest in Central Pennsylvania, which is also an odd choice for someone who live in the Bay. However, I lived there for a bit in the past, so I have some local knowledge. 

Hi @Tony T. 

Very hard to assume all things will be equal regarding future appreciation.  Especially if you're deciding between a larger house in the suburbs vs a smaller house closer to an urban area.  If, for example, your purchase price is $100k (talking WAY outside the Bay Area or out of state) you may be able to buy a 4/2, 2000sqft house built in 1998 in the burbs, while for that same $100k you'd get a 3/2, 1400sqft house built in 1978 closer to the urban center.  They can command the same rent, but 50% of the $100k value of the smaller house is in the land, while 80% of the house in the burbs is in the structure.  Over time you'll likely get better appreciation on the smaller house near the city center since most of the value is in the land and you'll never be competing with new construction, as you will in the suburbs.  Also, each turnover from that smaller house will cost less since the place is so much smaller. CAVEAT regarding land value in suburbs vs near city center:  On the Peninsula in the 60-mile swath between SF and San Jose this does not apply.  The value is in the land since there is nowhere to build and you never compete with new construction.

The whole condo thing is another story. I don't like them due to the lack of control. I hate the HOA component. But that's just me. Others love condos. I know people who invest in them and seem to do well.

Anyway, keep poking around the boards and asking questions.  Do your due diligence and don't rush into anything.  Determine your investing goals and WRITE them down.  Go to local Meetups as people have suggested.  Finally, PM me if you like. I live 5-10 minutes from you and would be happy to meet for coffee or some such thing.  I LOVE talking real estate and have had lots of people help me along the way and enjoy passing it on.

Happy Hunting!

Cheers,

Jeff