Not if you cheerpick the market and have cash to purchase.
The ones that I have been bidding on haven’t been able to attract any buyers that could qualify for a loan and have all gone to cash buyers.
i’m also not buying anything that would have to rent for more than $1800/mo.
My son (frankly, against my advice)just bought two houses in LA county. He financed both...that makes a total of four he has financed in that area. Two in Glendora and two in Sierra Madre.
You’re doing a good job, Dale. I know that in California, prices have dropped by enough that you can rent and get positive cash flow. Not generally true in Ohio, as marginal rents have dropped almost as much as prices, and vacancy rates are rising.
One of my business partners was a millionaire in real estate four years ago. He’s now in Chapter 13. I personally would not do well in real estate, because I’m not a great shopper or negotiator. Real estate is, of course local. Location, location, and location.
I am amused at the guy here who despite your saying that you pay cash, seems to think that you are borrowing money on investment real estate. Of course, if you had to sell in two years, interest rates/inflation would matter.
And California’s government budget crisis matters, as it is likely that taxes and utilities might run higher, and cause fewer people to move to California, while more leave, and those remaining get squeezed. But 10% cash on cash looks good enough to deal with minor annoyances.