YES! In fact, an investment opportunity like we have today might never come around again! Why? We believe we’re nearing the end of what has turned out to be the most severe downturn in real estate values ever experienced here in the Silicon Valley.
We’ve always believed that owning real estate is an excellent long term investment. We’re not just saying that; we each own multiple investment properties.
It’s always been difficult to purchase investment properties in high priced areas, as the rents didn’t rise as fast as prices did, so you would end up with huge negative cash flows. We’ve found that buying homes in a first time buyer price range (under $500k and some even as low as under $300k) works best in terms of getting the rent to cover all or almost all of the mortgage costs. But here’s the good news for investors; due to the bursting of the “subprime mortgage bubble”, the first time homebuyer price range has suffered the largest percentage drop in value over the last two years.
Now, buying an investment property in the first time home buyer price range (under $500K) has never been more attractive. We KNOW this price range will recover; as there are always renters who want to get into home ownership.
Basically, it takes a 25% down payment in order to purchase an investment property, and not be in a large “negative cash flow” position. In some cases, you can have positive cash flow.
Please give us a call if you’d like to discuss how we can help you take advantage of today’s unique buying opportunity and purchase an investment property of your own!