Just by driving 1.5 hours east of San Francisco, you can find income producing properties which provides 50% more than in the bay area. Here is one example. In Sacramento, a well maintained and newer style 31 units apartment building produces cash flow 50% higher than what you can get in bay area.
Sacramento is the capital city of California and the 6th largest city in CA. Government contributes 30% of the local economy. Education and Healthcare contributes 12% for the 2nd most important job providing industry.
Sacramento is the capital city of California and the 6th largest city in CA. Government contributes 30% of the local economy. Education and Healthcare contributes 12% for the 2nd most important job providing industry.
This $2.9M deal below will generate around $180,000 per year NET to you. (versus $120K a year in bay area.) It's only around $109 / square foot versus $200 to $400 /sqft in bay area. While you are waiting for the housing recovery in CA, by investing in Sacramento, you can get $40K more per year. In 5 years, it's a nice $200K extra.
Please contact me if you like to have more details.
Cheers,
Josh Chen
No comments:
Post a Comment