Phelan Investments Real Estate Phelan California The Land of Champagne Climate Article Part 2 Good Rental Homes Opportunities

When buying Phelan homes, it's best for an investor have short and long term plans. There is nothing worst then buying Phelan homes today and then within 20 years the neighborhood becomes a crime area driving property value down. Here in the Victor Valley area we have already exerienced that problem. Some investors only look at the short term. Tom's solution is to look long term as well. You should buy in an area where the Phelan homes today make good rentals, but sometime in the future these Phelan homes will be replace with larger more expensive Phelan homes. Choosing the right property is the key.

Based on Tom's rental investment plans, 1) Today rents should be $1,100-$1,200... 2) Phelan Homes should be located where the future will promote more expensive homes driving the property values up. 3) The investor can purchase an existing Phelan homes or a new homes as a rental today. 4) The investor can manage the Phelan homes or use a Property Management Company.

In 2003 nice homes were available as rentals in the price range $130K-$160K. Today these same type of Phelan homes are selling for $210k-$250k. The good news is homes are appreciating. The bad news is it's now harder to have a positive cash flow on Phelan rental homes.

Investors have to consider the trade-off of negative cash flow today and how fast homes will appreciate.

For Example: Tom bought a home in July for $145K. Today, in same area homes sells for about $290K (36 months later). In Tom's opinion it's a good time to buy because it's a growing area. Each investor has to make their own decision based their own opinion. Goods investors must have adequate financing, foresight and they are willing to take the risk.

For an area to have constant growth without major ups and downs, there must be a driving economic force. In the Victor Valley, we have the SCLA Southern California Logistics Airport (the former George Air Force Base). This base is being converted into the largest Air/Rail freight distribution center in Southern California. This airport now has the longest runway in the country, a new 850 megawatt Power Plant, rail service is in process and companies are starting to do business here.

This means jobs and more jobs.

Tom is a Real Estate Consultant, not a salesperson. Tom does not sell anyting. Tom finds investors homes and information to justify the investment for the investor. It's up to the investor to review the information and make their own decision. Choosing the right Realtor® makes all the difference.

Phelan Investments Part 2

Good Rental Opportunities