Despite the volatility of the US economy, one thing remains constant. Investors will always look to stay ahead of the curve.
The advantages of investing in todays market is the potential to capture assets that provide positive cash flow. These investments are the holy grail of real estate investing. In a strong market, these properties might not exist, but in down markets, a smart investor can pick out these diamonds. Are you contemplating purchasing your first investment or you a seasoned investor? My areas of expertise are Sacramento, Yolo
and Solano counties have 100′s of properties that would be considered excellent rentals with positive cash flows. Economists consider an idea vacancy rate to be 5%. The vacancy rates for Davis 3.4%, Dixon 4.2%, Woodland 2.99% and Sacramento 6%
are all very attractive in that respect. Home prices have adjusted by as much as 25% to 55% in this area. We have no rent control in this region which is an appealing aspect to investment ownership. Let’s take a look at a few different loan scenarios using 25% down, compliments of Daniel Chen of Wells Fargo Bank in Davis, California.
Purchase Price- $100,000 $200,000 $300,000
Loan Amount- $75,000 $150,000 $225,000
Interest Rate 4.75% 4.50% 4.50%
Monthly Cost $555.40 $1,028.36 $1,512.54
Rents have not declined at the same pace or to the degree of the housing market. The combination of low interest rates, level rents and a steep decline in property values has created many opportunities for investors. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, read my other Blogs and easy access to view all local area homes for sale.