1409 Chaparral Way $135,000
Potential Cash Flow: $473 Month ROI: 15% See the Cash Flow Breakdown
1409 Chaparral Way, Stockton, CA 95209: BACK ON THE MARKET! This home is back on the market as of 2/17/2012 after falling out of escrow. This short sale has been for sale for 109 days on the market (DOM) and is in a great family oriented north Stockton neighborhood, Stonewood II. As with last weeks Steal of the Week, this home is also in Lodi Unified School District.
From a rental standpoint this home should rent for around $1400 because of the size and location. It has 4 Bedrooms, 2 1/2 baths and is 2134 sq. ft. At $1400 a month for rent this home would cash flow about $473 a month after the mortgage, taxes, insurance, property management and a vacancy allotment. Bringing the ROI to about 15%. See previous Steal’s of the WEEK
On another topic, I was recently asked about a few questions about the Stockton real estate market and investing here . Both questions, being fear related, are great questions and need answers. It’s critical to be 100% comfortable with any real estate investment purchase. I often get asked these questions so I thought I would give my answers for all to read.
Question #1: I’m worried prices may decline further, am I paying to much?
Take a step back and look at the big picture of the market. Were are we in the real estate cycle? At or near Bottom. It’s impossible to time the bottom exactly, but we do know it’s a good time to buy. [ CA real estate investing purchases soars ] Even if the home drops another 5% that isn’t much and it wont effect our reason for buying. Our goal, well mine at least, is to buy for cash flow. We want positive cash flow, and a small drop in the price will not effect that.
Question #2: (Out of town Buyer). Isn’t Stockton a ghost town with blocks of empty houses? Will there be someone to rent it?
Stockton’s population has actually grown significantly over the past 20 years. One of the great things it has going for it is the inbound population, people are moving to Stockton, not an out-bound movement like Detroit and other cities.
Another thing to think about is current home ownership levels. When the housing market was BOOMING, home ownership levels were are all time highs. Some statistics say home ownership got as high as 69%-70%. Home ownership levels have fallen drastically, back down to their more historic levels about 55%-60%. So, now what you have is + or – 10% of the population now needing rental housing again. Their are a glut of former home owners looking for clean, quality rental homes.
I hope these answers help in your decision making process. Have a good weekend!
David
