Remote Investing Rocks | California Does Not Easily Cash Flow

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Remote Investing Rocks | California Does Not Easily
Cash Flow
"Housing, growth-wise, will be the best-growing sector of the major sectors in 2013,
hands down. I'm totally optimistic about housing's recovery- there's an inevitability that
it has to go higher." - Ken Mayland, President of ClearView Economics LLC in Pepper
Pike (Source: Bloomberg)
"Where can you make the most money as a rental-housing landlord? Not California" -
according to The Wall Street Journal report based on a study released by RealyTrac. The
study identified 20 major areas in the country where the cash purchase cap rate yield on
rental properties is more than 8%. Readers can note that many of these areas
are HomeUnion Cash Flow zones. The article further reported about the general investor
concern on inventory supply and institutional buyers drying up the foreclosure inventory.
RealtyTrac also made an interesting observation that the individual investors are using
MLS properties as the source rather than competing with institutional investors on
distressed properties. California areas did not make the list due to significant rise in price
with no corresponding rise in rents to make rental investments profitable.

This Week's Research
US Economy continues on the path of moderate improvement. US department of
commerce reported that February exports were $1.6 billion more than January exports
and trade deficit declining to $43 billion from $44.5 billion.
Corelogic reported that the home prices nation wide had an impressive gain of 10.2% in
February on a month-over-month basis. This is the biggest increase since March 2006
and 12th consecutive monthly rise in home prices.
Fannie Mae reported net income of $17.2 billion indicating that the mortgage lending
market is on the path to recovery.
US Construction spending in February increased by 1.2% to an $885.1 billion annual rate
on a month-over-month basis. According to Bloomberg magazine's article, housing
outlays climbed 2.2%, the strongest since November 2008, and the rise is led by single-
family home projects.
National Association of Realtors reported that the investment purchases of homes were at
1.21 million in 2012. This number is a slight decline compared to 1.23 million in 2011,
but the number had been well below a million during down time. Vacation home sales by
10.1% to 553,000 in 2012 compared to the 2011 figure of 502,000.
Freddie Mac's 30-year fixed-rate mortgage averaged 3.54%, and the 15-year FRM
averaged 2.74%.

About HomeUnion:
HomeUnion is an online real estate investment management firm, specializing in single-
family rental (SFR) properties. Based in Irvine, Calif., it provides all the services needed
for individuals to invest remotely in SFR properties. HomeUnion's role spans the
lifecycle of the investment transaction: from locating properties; advising on the
purchase; finding renters; managing the property; and selling it when the time comes.
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