California Dreaming

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Posted by Kenneth Hocking on May 07, 2008 at 21:44:50:

I had a discussion with a man I Highly Respect today about his investing advice to himself and others investing in California.

I will respect the privacy of his identity unless he decides to disclose it in a response on Here..

He said something very directly that I have been saying for a while.

"Price does not mean anything you have to back into the Numbers" you have to find what the rents are for your market. and back out your expenses and figure in a MONTHLY cashflow and then compute for the financing you can find and come up with a value that make since on the purchase side."

RENTS are driving values in most markets right now WHY

Because why would you hold on the a Primary reseidince loosing money every nthly when you might be able to rent the house across the street for 600-800 a month LESS.

Anyway the point is in this fairly Non appreciating market cash-flow is king

You must base you urchase upon Rent values because that is what will pay you if you get stuck with inventory and tht is what will be you true market that you are selling against.

Have a Great Night and Buy Cashflows or DO NOT BUY!


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