$10K State Tax Deduction Cap in California
Now that there is a cap on mortgage tax deductions in CA, I have been looking into purchasing rental property in other states; but the long term ROI that California property seems to have is not as lucrative in other neighboring states. Any suggestions on types of properties that tend to do better for rentals (i.e., duplex vs. apartment complex)? Thanks! by jfinke591 from Napa, California. Nov 29th 2018
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
Well, depends on your overall objective. Though typically a larger complex will generally yield a higher return than a duplex. As you may know your return is really based on your purchase price which will dictate your return. Are rents already at market? Is there room to increase? Does property have deferred maintenance? If so, when corrected can rents be increased? So many variables. Hope this helped. Feel free to contact me. 562.254.5616.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
As a real estate investor for over 30 years, my personal experience has been that long distance landlords rarely become profitable. That being said, the metro Phoenix area in Arizona is an awesome rental market.. Single family homes are best, but your per unit cost will be higher.. keeping your purchases at 4 units or less will make it easier to sell down the road is the buyers are using conforming financing.. anything over 4 is commercial.. but stay away from studio and 1 bedrooms.. best of luck.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893
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