MFH or Condo/Townhomes

[Indio]

If you had to park some money for next 5-10 years would you buy a MFH or a condo/townhome to rent it out & also net some appreciation in the process as well. I already have majority of my savings in stock market so don't want to put any more in.

I am looking at Oakland,Walnut Creek, Vallejo and Benicia areas. Perhaps Tracy and Stockton as well. Nothing in SJ, Santa Clara area within my budget which is up to 600-625K. Any other cities within 2 hours of Bay Area that have a potential of steady rental.

I will keep aside reserves to pay for at least 1 year mortgage payment, taxes and other expenses in case things go south.

MFH don't have HOA nonsense to deal with op to me seems to be an attractive option vs condo/townhome.

 

[Cyclesuzy]

There are some nice duplexes for sale in my neighborhood (well they're for sale, not sure how nice). Sacramento/Citrus Heights/Carmichael neighborhood.

 

[stan23]

Yes, that's a GREAT idea, however with some caveats. My parents bought a house in Sac to do the same thing, and it didn't work out, and i'll tell you why.

You want a place where you are physically close to. You'll be going there more than you think.

for your price range, I would look as far as Morgan Hill/Gilroy.

Morgan Hill is pretty hot right now, but you can still get something in your budget and have a healthy rental income.

 

[Cyclesuzy]

Yes, that's a GREAT idea, however with some caveats. My parents bought a house in Sac to do the same thing, and it didn't work out, and i'll tell you why.

You want a place where you are physically close to. You'll be going there more than you think.

for your price range, I would look as far as Morgan Hill/Gilroy.

Morgan Hill is pretty hot right now, but you can still get something in your budget and have a healthy rental income.

Yeah, didn't really think about that ... Good luck with whatever you do.

 

[gnahc79]

For MFH do you have to maintain the exterior paint, roof & siding? For condos/townhouses that's typically all on the HOA, which is covered by the HOA fees. If you pick a place with a good HOA then this is a pro for condo/townhouses and a con for MFH. If you pick a place with a horrible HOA then MFH it is.

 

[DTM74]

yeah, live close by your rental. It sucks getting a call at 8pm on a Sunday, "The sprinklers won't turn off!..."

 

[MikeGyver]

My personal preference would be to stay away from anything with an HOA. PITA.

+1 on buying close to where you spend time, either work or home, so you can check on it easily.

 

[rodr]

I've visited Benicia a few times and always liked the feel of it.

 

[Indio]

Thanks for all the responses, keep'em coming

Is Stockton still as bad it was 3-5 years ago? Anyone here on BARF from Stockton?

 

[renxianqiclone]

If you had to park some money for next 5-10 years would you buy a MFH or a condo/townhome to rent it out & also net some appreciation in the process as well. I already have majority of my savings in stock market so don't want to put any more in.

I am looking at Oakland,Walnut Creek, Vallejo and Benicia areas. Perhaps Tracy and Stockton as well. Nothing in SJ, Santa Clara area within my budget which is up to 600-625K. Any other cities within 2 hours of Bay Area that have a potential of steady rental.

I will keep aside reserves to pay for at least 1 year mortgage payment, taxes and other expenses in case things go south.

MFH don't have HOA nonsense to deal with op to me seems to be an attractive option vs condo/townhome.

Stay the fuck out of Stockton. You and your family will thank you for it!

 

[stan23]

Thanks for all the responses, keep'em coming

Is Stockton still as bad it was 3-5 years ago? Anyone here on BARF from Stockton?

I grew up in the bay area and only been to Stockton a handful of times (usually it's to go to the kart track) or a stop gap on my way to tahoe.

But just recently I found myself there - sold my 911, and met the guy in Stockton.

The downtown area was actually quite pleasant and while there is no 'bay area' money there, there is definitely a blue collar feel. There are definitely nicer areas of stockton, but if I were you, I'd look at investment properties in Pleasonton, livermore, danville, san ramon, and dublin. I think with careful searching you may find some 600k condos.

 

[tuxumino]

for your budget you could probably buy three properties in Texas and use a property management company and sell them in 8 years for a tidy profit.

 

[wazzuFreddo]

I was looking at loft condos in downtown Spokane on the web tonight. I should cash it all in and go get a job with Avista Utilities. :laughing

 

[omegajeff]

WTF is MFH?

 

[wazzuFreddo]

Multi family home

 

[Bubba_s]

Multi family home

I was reading it: ManuFactured Home :laughing

more coffee.

 

[mean dad]

Mother
Fuckin
House

 

[jt2]

This is NOT the time to be entering the real estate market as an investor. There almost certainly be a correction and down market in the next 5 years or so.

 

[DTM74]

Meth
Factory
Home

 

[fraz]

For MFH do you have to maintain the exterior paint, roof & siding? For condos/townhouses that's typically all on the HOA, which is covered by the HOA fees. If you pick a place with a good HOA then this is a pro for condo/townhouses and a con for MFH. If you pick a place with a horrible HOA then MFH it is.

It varies and read the fine print before jumping. My HOA for example covers water, garbage, paint, roof, landscaping, gutters, exterior plumbing. However, as I recently discovered, they do not cover siding and water intrusion due to their negligent maintenance (I am tenant and LL didn't want the headache of pursuing). They also decided they don't cover the aging/rusting spark arrestors on fireplace so there is always some "interpretation" of things that may not be spelled out in CC&Rs.

That said, I am looking to buy and NFW do I want an HOA. I want a MFH all the way!