Cash Flow In San Diego

Who says you cannot CASH FLOW in San Diego?
Well, I am here to tell you that you can!
Here is the deal. The city of Oceanside has many low priced properties; yet, the rental rates are still quite high. This is due to the strong military presence, and due to the fact that Oceanside is a coastal community. All in all, there is a huge rental market in Oceanside; and as an investor, this means cash flow.
For example, my business partner and I went to one of these houses the other day and spoke with the owner. The owner loves his house, and does not want to move away; however, with his loan coming to term. With $500 increase in his mortgage, he will be unable to make his mortgage payments and at the same time, provide for his family. When I asked him if he would be willing to stay in his house and rent it for $2100 a month, he said "yes"!
Let's do the math.
Purchase Price $265,000Percent Down 10% or $26,500Interest Rate 6.25% interest rate for 1st mortgage or $1,305 a month
8.25% interest rate for the 2nd of 10% of the purchase price or $199Property Tax $265Insurance $55TOTAL Roughly $1800.00
Using the above stats, if you place as little as 10 percent down, you will have a positive cash flow of $300. Now, if you place 20% down, your new investment property will have positive cash flow of approximately $475.00. Not only do you cash flow monthly, but the previous owners bought this particular house for $450,000.00 just 2 years ago. If you do buy this property, rent it, keep it until the market changes, and sell it for a huge profit!
As Rich Dad said to Robert Kiyosaki, if you could buy a house and lose $100 a month how many could you purchase? The obvious answer is not that many. Yet, if you could buy a house and make $100 a month, you could, in essence, purchase an infinite amount.
Today's market is unbelievable! It is definitely time for the savvy investor to purchase -with historically low interest rates, low priced homes, high rents, and a knowledgeable Broker/Investor on your side.
If you have any questions, please do not hesitate to call me at 858-34-HOUSE. In addition, I would love to share with you many creative strategies in which you can purchase a home for little to no money down regardless of your credit score (i.e. seller back financing).
Danyel Brooks is a California licensed Real Estate Broker who works primarily with Investors. As an investor herself, Danyel has the creative mind to make the most profit out of a deal. She continues to ask herself, "What is the highest and best use?"
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