Now Is the Time...

We got both of the houses that we purchased in the last month rehabbed and set to go. One already has a tenant in, I signed the lease agreement yesterday and the rent is $1575 - we paid $144k for the house so do the numbers that is not bad... Cashflow in CA .

We bought in Contra Costa County - I have had lots of questions regarding that. You have to come to the SJREI meetings for all the specifics. We completed the rehab in breakneck speed and the second house will be ready on Friday. I am doing a lease option on that - 99% sure at this point. The market is great right now for investors to start to dabble. It does not mean that the prices will not deteriorate further, but I am comfortable that these houses which sold for over $400k at the top of the market are a good buy. Additionally there is a great pool of tenants - people who have had to move for the following reasons:

1. Their landlord lost the house to foreclosure
2. The landlord lost him primary residence, and needed to move back into his rental
3. The landlord's family member lost their home and he needed to have them move into his rental
4. The owner occupant lost their home to foreclosure, and now need a rental
5. Section 8/ government assistance tenants looking to move up
6. Regular renters looking for a home that is nice and well situated

Interesting list - how things have changed this past couple of years. Craig's list is a great way to get tenants, and in this area potential tenants are very tech savvy and are always online.

Investor Tip of the Week:
Say you have a $150k in an IRA - you could buy a house for cash and have $1575 flowing into your account on a monthly basis - that sure beats the stock market and you don't need to freak out if you have a vacancy - you paid cash for the house, no mortgage due...just something to ponder. Make it a great week!