$1,000 a month NET Free Cash Flow

A nice single family house close to bay area can now generates $12,162 NET cashflow a year or around $1,000 a month. 

What happens if you have 5 of these kinds of houses below? Will $5,000 a month support your living expenses for the retirement?  Not to mention the gains from possible real estate appreciation in the future. 

Here is one example which you can build your retirement portfolio when California housing price is very low now. 

$3.49M of 17 units apartment Homes in Walnut Creek

位于旧金山湾区Walnut Creek 的全新公寓。共24个单位，于竣工后卖出7个单位。2010年被银行回收。目前有17个单位出售。其中包括有12个两房两卫面积为 905 平方英尺的单位以及5个 一房一卫 779 平方英尺的单位。 公寓分为上下两层并拥有地下停车位。每户均有硬木地板，大理石台面，不锈钢厨房电器及上下式洗衣干衣机的连接。 所有的17个单位目前都是空房.

$3.75M, 22 Single Family Houses in West Sacramento

一个位于沙加缅度的现代化独立房屋群,于2007年建成,共22栋, 总面积 35,205sf, 占地29,040sf, 每户三层三房三卫,面积于1550sf-1630sf之间, 售价$$170,455/户. 每户可租$1550/月.总售价$3,750,000. 大约可有6.8%回报率.

16 Units, Castro Valley Apartments

位于加州湾区的Castro Valley16个单位的公寓,每个单位2房1.5卫浴. 公寓維護良好,周围环境安静. 总面积19,152sf,占地59,045sf. 总售价$3,160,080, 每年可有$219,144的总收入,大约可有3.8%的回报率. 

$2.9M of 31 Units apartment Homes in Sacramento

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. 

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

1 yr old, 8 units condo in Marin County, San Francisco Bay Area

It's very rare to see this kind of the new builds in San Francisco bay area. See the summary below. The builder finished the project in Aug 2010 but couldn't sell the units before it was taken back by the bank. 

The estimated value could be $2.5M to $2.8M but might be bought for $2M+. At the market peak around 2007, it could worth around $3.8M.

Now, you can get rental income with 100% occupancy while wait for market to come back. 

If you or your fellow investors may be interested in this deal or this kind of deals, please let me know so I can provide more details or similar opportunities in the future.

Thanks, 

Josh Chen

Good Shepherd Value Investment and Asset Management