California Market...bad Time To Buy???
I just sold my house in Orange County, Ca and we are going to do a 1031 and buy an apartment or four-plexes etc, we are looking in Fresno. The market is still strong there, but I'm worried that it is inflated and will take a downward turn. I don't want to pay taxes.and I do want to invest. I'm in the middle of reading The Cambell Method to see how that market will do. California just seems so high. any suggestions? :-? :-?
Toolittletime:
This year is going to be the biggest gain in real-estate appreciation we will see in California. After this year, all indicators are that the affordability index will be too high and the market will correct itself.
My advice to you is to stay in your backyard in terms of investing. You can still get good deals if you know where to look. I would start with "absentee" owners in your area.
Best Riches,
Jeffrey Adam
[addsig]
Jeffrey makes a sensible response. I am afraid that this present spike is almost everywhere.
Transaction is possible it is just a little different. You may be working closer on Flip/Flop. The main thing is not to think of yesterdays values if you are dealing in todays transaction. I just leased a house for $2,400 a month. The man has nowhere else to go. Nothing suitable available in the middle valley. He has to have 3 br and 2 ba. He needs a good school and an acess to freeway. I know it is overpriced and I had to get first and last and a damage deposit of $4,000. The only way I could come out on a really close Sup2. Of course he has an option to buy, but it is much too high. This is how you work when property is in my judgement on a spike.
The advent of the container house will at somewhere around number 300 will start a downward trend just how fast it will roll I cannot tell, but if you can get for $58,000 plus landlease payment a 1400 sq. ft 3 br and 2 ba hse.You will take that and forget all the stuff over $400,000. Of course this will effect the $400,000's and they will start their drift downward.
Cheers Lucius
Thanks for both of your help...Jeffery how would I find "absentee" owners? Thanks :-?
Hey, TLT - to find 'absentee' owners, check out the tax assessor's office. Go to the computer terminals they probably have set up and start going down the list of an area. Look for owners whose mailing address (for the tax bill) doesn't match the situs address.
Then, all you've gotta do is enter it into a computer, hit 'mail merge' and send out a few letters.
It's best to look for out-of-state owners, but if you find someone who's obviously owning and living somewhere else, you might send them a letter, too.
Time-consuming...yes. Might take too long, given how far into your 180 days you are. But I've come up with several people looking to sell off of this method. Might be worth it, since they'll know you're serious by your indicating the 1031 in the letter.
Best of luck,
KC