All Forum Posts by: Ryan Jenks

@David Faulkner, I appreciate you pointing out the bigger picture such as appreciation and rent growth potential. Sometimes I overlook those considerations when I hear about "other peoples' deals". After spending my teens and early 20's in the stocks, I have learned that I'm not a great guru on what will appreciate. I wouldn't intentionally buy a property that I didn't think had a chance of appreciating but with a buy and hold strategy, it's not my number one criteria. I got what many considered a deal here in my town at 320k for a duplex (in a great area with great tenants) spitting out 2k in gross rent. Apparently, one must have cash return to calculate a cash on cash return :). I haven't made a dime that I could reinvest in something other than just maintaining the duplex and the basic cash flow to operate my new little side business. If I intend to make any ROI outside of my amortization, I would need to buy something for less, whether or not it is my area. I appreciate any thoughts, banter, feedback or questions... thanks!

Raj Vachani, at this point in my life, out of state grass is greener than my Lodi pastures.  I don't know what your price to rent in San Jose is but it does seem that San Jose real estate is expensive even for its high rents.  My friend who invested in Indiana is getting almost the same rent per unit for his 4 plex as I get for my duplex... and he paid almost 1/3rd less than I did (supposedly it is in a good area).  I don't feel that a investment out of your area under 500k is worth the distance-hassles, but if I can do a million dollar deal on an apartment, it may just pencil for me to take off work and fly somewhere periodically.  

I grew up in an atmosphere where my family had rentals and so now at 32 I currently have a house and duplex that I rent out here in California.  I think I will lean towards apartment complexes as my next purchase and maybe out of state as California can be quite expensive.  I look forward to networking with like minded people here on biggerpockets.com.