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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Live2Sail who wrote (137552)	7/30/2008 1:04:03 PM
From: Lizzie Tudor	Read Replies (2) \| Respond to of 306849

If you want to make money on rental RE in the bay area, why don't you take a look at a close-in pseudo "bad" area (this would be redwood city near you) and buy a rickety foreclosure, then put $20K into it (but no more- be careful)- and rent it. That equation works right now and has not in the past. You won't make money immediately and of course you need to put the 10% down, plus the $20K or so for repairs, so you are out that money. But you can rent for about the mortgage at this particular moment in time. Its a good deal. You need to find the correct property, something that is borderline desirable, and then the repairs need to be of the correct type. There was a money mag article on this one- roof repairs for example are expensive and add almost no value to the resale or rent of a house- UNLESS the current roof is deteriorating and damaging to the house. Otoh, ripping up crummy shag carpet from the 80s and sanding down the floors and refinishing - which costs about $5K is my guess- is worth it.