All Forum Posts by: Zhenhua Y.
Zhenhua Y. has started 1 posts and replied 2 times.
Post: Is it good to buy a investment SFH in bay area today?
- Mountain View, CA
- Posts 2
- Votes 2
Thanks @Marcy Moyer and @Amit M. for your inputs. I will check them out. Our local market is so different from the rest of the world.
Post: Is it good to buy a investment SFH in bay area today?
- Mountain View, CA
- Posts 2
- Votes 2
I understand we've discussed the same topic again and again. But, is it still good to buy an investment SFH in bay area (south bay, specifically) today for appreciation purpose?
The reason I'm asking is because of bay area's appreciation% record. Even the cash flow will stay negative for a long time, but ROI may beat the cash flow properties in the long run.
For example, assume that we have 500k cash today:
Case 1: buy a 1.5M SFH in south bay. Based on the appreciation% record in the past 5 yrs. The property will profit 1.5M (~100%) after 5 yrs, minus the loss from negative cash flow.
Case 2: buy cash flow properties in the other locations. The cash flow is ~40K/yr (CCR=8%). They only profit 200K after 5 yrs, it's far less than a SFH in south bay.