Blog with MAE Capital

August 24th, 2011 3:41 PM

Did you know that the supply of good quality home across the state of California has gone down.  Yes, although foreclosures, and short sales are up and inventories are still pretty high, the good quality fixed up home is tough to find.  The inventory of homes that need repair is high and this makes it a great time for investors to purchase and flip homes or hold them for rentals.  With the supply of of homes for rent at an all time low, rents are are high for homes in comparison to home prices.  We are seeing investors capitalizing on this phenomenon by buying low priced homes and flipping them or leveraging and obtaining long term financing and creating rentals with positive cash flows.  The returns in the greater Sacramento area are 13-16% on your money with rentals, not taking in consideration inflation potential.

Tell me what you think.


Posted by Gregg Mower on August 24th, 2011 3:41 PMPost a Comment (0)

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