You Can’t Get This Kind of Real Estate Investment in San Carlos

Posted on 13 January 2010 by vvandervort

House I bought in Cincinatti, OH for $72,000
House I bought in Cincinnati, OH for $72,000

Buying San Carlos real estate for investment purposes was just not an option for my husband and I as we started our real estate investment portfolio, so we started buying not even in California, but actually in Ohio.  You can see our recent purchase pictured here, which we bought for $72,000 (appraised for $82,000 – instant equity!).

Our #1 goal in real estate investing was simply cash flow. Appreciation was not necessary, we just wanted more money coming in on a monthly basis. 

Because of some lender requirements, we ended up putting about 26% down and with our closing costs (title and escrow fees, property taxes, hazard insurance, and loan fees), we paid out about $24,000 to close the deal.  We got a KILLER rate from Bank of America of 4.75% – unbelievable on a “non-owner occupied” property.  So our monthly payment is $260.83 per month!  Everyone laughs at that because they are saying “Wow! Less than a car payment!”.   And it rents for $925 per month!!!  You gotta love the delta on that equation!

We faced so many unknowns when we first contemplated buying income property, that we couldn’t pull the trigger for several years.  Then I met these guys, Ed Barriskill and Chad Doty, that started 37th Parallel Properties.  They have such an unbelievable business model.  It would take me a whole other blog post to explain why they are the Nordstrom of purchasing real estate investments.  Their customer service and care is unparalleled (no, that’s not how they got their name). 
With interest rates where they are and prices where they are in San Carlos, it is certainly a much better time to buy income properties in San Carlos than it has been for many years, but if that’s not in your budget or plan, I’d definitely look into 37th Parallel.  It has been invaluable (and profitable) to work with them.

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