Buying a house in Fresno...
August 3, 2015 8:34 AM Subscribe
I'm going to be purchasing a house soon in a relatively economically depressed area that has little chance of a renaissance (Fresno, CA). I'm hoping to purchase a duplex/triplex, or a house with a mother-in-law unit so that I can live in the back and rent the main house. While this will be my home, I want to treat it more like an investment. The idea of going into debt for shelter make me unhappy; the idea of eventually (10 to 15 years) getting a positive income stream from the whole thing helps.
As of next month, I'll have zero debt. This calculator says I can "afford" a bit over $200,000. Where can I find good information about how to do this well? It seems difficult to find real estate reading that isn't focused on skimming money off of desperate sad people.
I'd love to read blogs from regular people who have gone through this, commercial real estate people, small-scale professional landlords, whatever. I'd also love to read actual book on the subject.
My fixer-upper skills are pretty low; I can put in new flooring, fix simple plumbing issues (put in a new toilet or sink, stop most leaks), replace and repair dry wall, probably install some Ikea cabinets. Anything else I'd have to pay someone to do. Taking all that into consideration, I'm not really looking to do major renovations, beyond perhaps some work to isolate a rental space if I go for a single large home, or simple cosmetic fixes.
What metrics are relevant? How do I determine which area to buy in? Is it absolutely necessary to get into the "good" school system (Clovis unified in the Fresno area) to make this work? Is it crazy to purchase in the relatively poor and violent arts area (the Tower District), or a random neighborhood to the north / west that doesn't have much of an anchor? How bad is it, really, to purchase right next to the rail road tracks in terms of renting a space out and/or reselling later?
What attributes in a property should I consider highly valuable? Moderately valuable? A liability?
What questions am I not even asking? Are my expectations reasonable, or am I crazy?
As of next month, I'll have zero debt. This calculator says I can "afford" a bit over $200,000. Where can I find good information about how to do this well? It seems difficult to find real estate reading that isn't focused on skimming money off of desperate sad people.
I'd love to read blogs from regular people who have gone through this, commercial real estate people, small-scale professional landlords, whatever. I'd also love to read actual book on the subject.
My fixer-upper skills are pretty low; I can put in new flooring, fix simple plumbing issues (put in a new toilet or sink, stop most leaks), replace and repair dry wall, probably install some Ikea cabinets. Anything else I'd have to pay someone to do. Taking all that into consideration, I'm not really looking to do major renovations, beyond perhaps some work to isolate a rental space if I go for a single large home, or simple cosmetic fixes.
What metrics are relevant? How do I determine which area to buy in? Is it absolutely necessary to get into the "good" school system (Clovis unified in the Fresno area) to make this work? Is it crazy to purchase in the relatively poor and violent arts area (the Tower District), or a random neighborhood to the north / west that doesn't have much of an anchor? How bad is it, really, to purchase right next to the rail road tracks in terms of renting a space out and/or reselling later?
What attributes in a property should I consider highly valuable? Moderately valuable? A liability?
What questions am I not even asking? Are my expectations reasonable, or am I crazy?
You want to find a house that is a good deal for reasons that you can fix (or avoid) when it is your turn to sell. So, orange shag carpet is your friend - anything that can be easily cleaned/replaced/updated. So are sellers who are in a hurry/don't know the market/inherited the house from deceased parents. Problems like railroad tracks or poor schools lower the price when you buy but they also lower the price when you go to sell. Those problems will also make it less attractive for renters. This is particularly important when the market gets soft - if you have an attractive rental, you might have to drop the price. If you have an iffy rental that is already at a lower price (due to problems like train tracks) you find that you can't drop enough to keep it rented and/or you have dropped into a price point where you can't find reliable tenants.
posted by metahawk at 10:43 AM on August 3, 2015
posted by metahawk at 10:43 AM on August 3, 2015
Also, if you would be renting out a one bedroom unit, school district doesn't matter as much as long as it is a safe, attractive neighborhood since it will more likely to going to one or two adults. Two bedrooms or more, your tenants will probably have children and school district will certainly be a factor in how much rent you can charge.
posted by metahawk at 10:50 AM on August 3, 2015
posted by metahawk at 10:50 AM on August 3, 2015
In terms of area, I would think about the type of renters you want to attract. This is especially true since you'd be sharing the space with them, but in any case you want to be able to attract and retain reliable renters who can pass a credit check, will pay rent on time, etc. etc.
posted by rainbowbrite at 11:11 AM on August 3, 2015
posted by rainbowbrite at 11:11 AM on August 3, 2015
Make sure that you're tied into the municipal water system. A lot of wells are going dry south of Fresno.
posted by spork at 12:26 PM on August 3, 2015
posted by spork at 12:26 PM on August 3, 2015
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I don't know anything about Fresno specifically, but in most cities single family homes are generally built on lots zoned for single family homes. This might violate your local zoning laws.
Look into the zoning laws and designations yourself, don't rely on what your real estate agent says. Depending on the specifics, this might be doable if you can abide by certain restrictions for your own unit. For instance, in some places this would work OK as long as you did not have a stove.
posted by yohko at 10:24 AM on August 3, 2015 [1 favorite]