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follow BayArea 2017 Jul 25, 9:15pm
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We are in a hot seller's market, particularly here in the Bay Area.
If you were going to buy investment property today, where would you do it? Are there any cities left in Nor Cal today with 9% or 10% cap rates?
I just sold a rental in the East Bay that had a cap rate of about 5%. It simply wasn't bringing in enough money to deal with the hassles of being an active landlord.
Let me know what you guys think, thank you.
Are there any cities left in Nor Cal today with 9% or 10% cap rates?
Here are some articles from the last few days covering this. One thing that caught my attention is the preference for larger investors to buy in developments with HOAs for various reasons. If you type in "Single Family Investors" into your search bar and refine the time to one month or less, you will or should be able to pull up quite a few hits.
Institutional investors exploiting market for HOA single family homes. https://independentamericancommunities.com/2017/07/24/institutional-investors-exploiting-market-for-hoa-single-family-homes/
Single-Family Landlords Are Sinking Cash Into Rust Belt Rentals. (This was interesting in that the maximum price point was 200K or less)
Is the Single-family Housing Market an Overlooked Opportunity? (This is much more of a technical discussion etc.) https://www.linkedin.com/pulse/single-family-housing-market-overlooked-opportunity-brandon-finnie?articleId=6293997919284658176
Are Large Investors Dominating the SFR Market? (similar to the first link) http://www.themreport.com/daily-dose/07-21-2017/large-investors-dominating-sfr-market