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would you buy an investment property while renting?


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2009 Jul 29, 4:51pm   1,427 views  4 comments

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Just throwing it out to you all...

I am a SF Bay Area renter.  Prices haven't corrected all that well in the areas I might want to buy.  But lot of other places in California (Sacramento ..etc) have come down quite a bit.  I can very comfortably buy one of these and rent it out.  But I will be a renter too, in Bay Area;  and renting even longer b/c I used up my 'house-fund' to buy the investment property.

any body done this?   experiences / thoughts?

thanks very much

#investing

Comments 1 - 4 of 4        Search these comments

1   ch_tah2   2009 Jul 30, 7:37am  

We've done it twice. Also a BA renter. It makes sense considering there are plenty of parts of the country that have dropped to where you can rent it and be cash flow positive or at least neutral. We didn't use up the house-fund though. That aspect would depend on how long you are ok with renting, and how long it will take to build up the house-fund again.

2   Tude   2009 Jul 30, 10:05am  

Actually, in the area I live in (West Contra Costa County) people can now buy some homes for less payment than rent. A home in my neighborhood sold a few months ago for 200k and was rented in a week for $1600/month.

3   Tude   2009 Jul 30, 2:25pm  

interpretame says

Tude says

Actually, in the area I live in (West Contra Costa County) people can now buy some homes for less payment than rent. A home in my neighborhood sold a few months ago for 200k and was rented in a week for $1600/month.

When you factor-in the additional $1600 for the bullet proof vest, $450 for the .357 Mag, $40 per month in hollow point rounds, $1200 for the security system and $800 for the German Shepherd, it suddenly DOESN’T SEEM TO BE SUCH A GOOD DEAL anymore.

Whatever. I live in a lovely neighborhood, have been here for 10 years. We have no alarm system, often don't lock our doors, and know our neighbors as friends. We trade goods and labor, and hang out on each others front porches having a beer. Everyone waves within a several block radius as we come and go.

Everyone I know in "upper end" areas don't know any of their neighbors as they all stay locked in their homes and are scared to look each other in the eye...

4   Tomrisk   2009 Jul 30, 2:33pm  

Nop.

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