MichelleCherie Carr Crowe Just Call...408-252-8900, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty)

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Rainer
213,163
Dennis Swartz
Full Circle Property Management - Columbus, OH
MBA, GRI...experience counts!

I have no clue about Richmond California but a $450k investment that returns $2900/mo before expenses does not sound like good investment unless appreciation rate is very high-which normally condos are not.

Sep 24, 2016 09:36 PM
Rainmaker
904,197
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

With the numbers that you just provided, taking expected expenses into account and considering the yield that most of the investors that I work with would be after, I would say no in terms of cash flow. I don't know enough about the area to speak to appreciation so you would need a local for that.

Sep 25, 2016 12:16 AM
Rainmaker
1,707,423
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Normally condos of this kind have high ROI fees. I would almost be sure that the cap rate is 5% or less. Also California is not a landlord friendly state on eviction. You would need yearly double digit appreciation to make this work.

Sep 24, 2016 10:51 PM
Ambassador
5,468,015
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Not nearly enough roi for me.

Sep 24, 2016 06:55 PM
Rainmaker
5,654,919
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Michelle,

I agree with Michael Jacobs .  No one size fits all.  A

Sep 25, 2016 01:50 AM
Rainmaker
4,210,517
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I think Michael Jacobs has answered your question.

Sep 24, 2016 11:39 PM
Rainmaker
4,143,032
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

It depends on the goal - now and/or long term as well as the individual.   

Sep 24, 2016 11:27 PM
Rainmaker
1,462,827
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900 Like any real estate investment, the ROI will tell the story as to whether it is a good investment.

Sep 24, 2016 11:17 PM
Rainmaker
4,799,601
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I have no idea about the Richmond VA market.  Though, in most areas I've never considered a condo to be my top choice for an investment property.

Sep 24, 2016 11:08 PM
Rainmaker
1,992,801
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

 I have no idea what the market in Richmond is like now- I think you will get a limited number of informed responses. 

Sep 24, 2016 10:59 PM
Rainmaker
3,070,134
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Dennis Swartz nailed this one!

Sep 24, 2016 10:26 PM
Rainmaker
1,644,982
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Now I have to visit Richmond, CA to check it out!

Sep 24, 2016 09:51 PM
Rainmaker
899,548
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

Investment property is definitely market specific.  I am not familiar with this situation.

Sep 24, 2016 08:15 PM
Rainmaker
634,332
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

There is always risk and any investor needs to do the numbers on the specific proerty. In my opinion that area has strong numbers for projected growth so the right purchase should be a at least a reasonably good investment unless the economy takes a downturn.

Sep 24, 2016 06:55 PM
Ambassador
4,314,394
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Michelle Carr-Crowe-Selling Silicon Valley Homes in Top Schools San Jose, Cupertino, Saratoga, Palo Alto-Just Call 408-252-8900 - investment is investment and should help at some time for sure.

Sep 24, 2016 04:51 PM
Rainer
116,640
Althea Kippes, Esq.
A.T. Kippes, Real Estate Broker - San Francisco, CA
Serving San Francisco to Silicon Valley!

Richmond, California is an area that many people are considering because the price of housing in San Francisco, Berkeley, and even Oakland is increasing, pushing many people into areas that may not have been as desirable in the past.

Richmond will probably be a great investment given the expansion of the University of California to Richmond, BART, future ferry service, and affordable home prices.  While the area had a lot of crime in the past, it is becoming gentrified, just like West Oakland and East Palo Alto.

Oct 02, 2016 07:12 AM
Ambassador
2,439,945
MichelleCherie Carr Crowe Just Call...408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thanks all for the comments and input. I reached out direct to about a dozen ActiveRain agents who say they specialize in Richmond-and got just 2 responses.

Sep 26, 2016 06:18 AM
Ambassador
4,609,557
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

You might do a search for Richmond CA agents here on AR and reach out to them specifically. There are a number of issues to take into consideration here. A SFD will do better than a condo in terms of appreciation, and perhaps fewer expenses (like HOA fees)

Sep 25, 2016 09:34 AM
Rainmaker
1,394,919
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Dunno the area, sorry.  I'd say depends on the mortgage and hoa fees too.  I'm not a huge condo fan since in general they don't appreciate at the same rate as homes.

Sep 25, 2016 09:32 AM
Ambassador
3,723,075
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

You know a whole lot more than I do about California real estate!

Sep 25, 2016 09:10 AM
Rainmaker
653,877
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Investment properties are a good way to invest for the future.  You should only request opinions from those that work and live locally.  There are not only city considerations but also community, school and long term investments to consider.  One community just blocks away from another may be quite different as far as desirability and investment potential.

Sep 25, 2016 09:08 AM
Ambassador
2,577,307
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 That's not much ROI on $450K out of pocket, plus condo fees, taxes, insurance. 

Sep 25, 2016 08:20 AM
Rainmaker
966,116
Diana Zaccaro Broker Associate
Tropical Beachside brokered by eXp - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

Does it cash flow? That is what matters, regardless of location.

 

Sep 25, 2016 05:50 AM
Rainmaker
3,985,928
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

For any situation, what is good for one may not be goood for another.

Sep 25, 2016 04:21 AM
Rainmaker
827,782
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

No idea what the capital appreciation might be for the area without doing a lot of research, what normal rent prices are, demographics and so on. You need to do some serious numbers, but best not to offer that sort of advice as a real estate agent.

Sep 25, 2016 03:25 AM
Rainmaker
923,523
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

No clue since I don't work that area

Sep 25, 2016 01:58 AM
Rainmaker
1,158,212
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

What is the HOA fee? Anticipated vacancy % ?

The $2900 sounds high for that part of the BA. Craigslist suggests a 3 or 4 br SFH rents out for ~$2500.....

Sep 25, 2016 01:32 AM
Ambassador
1,585,505
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

I have no clue about the Richmond market.

Sep 25, 2016 01:30 AM
Rainmaker
4,054,653
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I would say Real Estate is the best investment there is.

 

Sep 25, 2016 12:51 AM
Ambassador
1,616,404
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

That depends on the investor.

Sep 25, 2016 12:38 AM
Rainmaker
2,649,198
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Rentals need tenants with incomes. Is there a good job market?

Sep 24, 2016 11:59 PM
Rainmaker
4,182,927
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I know nothing about the Richmond, California market and wouldn't begin to opine. 

Sep 24, 2016 11:11 PM
Rainmaker
6,679,073
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Your question should be directed to local real estate professionals.

Sep 24, 2016 09:47 PM
Rainmaker
4,433,753
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I know real estate is a good investmnet in Bucks county.

Sep 24, 2016 09:10 PM
Rainmaker
1,157,535
FN LN
Toronto, ON

I am not familiar with that market but perhaps some other ActiveRainers may be able to provide helpful comments.

Sep 24, 2016 05:38 PM