I bought a small house (1100 sq ft on a 8,000 sq ft lot) in Las Vegas a little over 2 year ago for $165,000.00. I paid Less than $40,000 out of pocket at closing. I refinance after one year and take out $15,000.00. My out of pocket is down to about $25,000.00.
I rented the house out for $820.00/month with zero cash flow. The first tenant moved out after 2 years. I just rent it out to a new tenant for $1050.00/month. I now have about positive cash flow.
The house just like mine next door was sold 2 month ago for $285,000.00. It was sold in less than 1 week. I would expect my house to be worth about the same price.
I made an offer of $160,000.00 on a condor (1100 sq ft) in Las Vegas last week. The deal is now in escrow. I expect to close the with about $45,000.00 out of pocket. I expect to collect about $970.00/month in rent with zero cash flow.
Bonus: all my expense to Las Vegas from Los Angeles are now business travel and tax deductible.
The house price is fine. Buy and hold for at least 5 years!!! It is time to buy... before it go back up!!!!
The same with San Diego. Yea, SD is a tough place to make a living commiserate to RE prices. However those who've already scored want to live in SD or the OC at any cost. They want paradise and can afford it. I doubt the average La Jolla buyer is concerned about the SD job market. His wealth is tied to the share price of SBUX, MCD or WMT not to the employment opps at SBUX, MCD or WMT. So different criteria drive different markets. [/B]
Not a jab at you or your thinking pabst, but what do you think happens in the high pe markets if sbux, mcd, wmt etc start to turn down?
Buying a house for investment is not a good idea considering how much you have to pay for interests, it'll probably adds up to about 3 times the value of the house? If you are a good trader, I am considering you are, just imagine how much you could accumulated over the years with that money doing trades.