Residential Rental Investments

Earn Passive Income

What's Considered a Good Investment?

Everyone's definition of a good investment is different. Some investors may be content with breaking even or some may not be content unless they're getting 6% net return per year. For myself, if I can break even, after all expenses, i'm content. I would consider that as a decent investment. Of course, I can only speak for myself but given that I live in Southern California and the US inflation rate has been steady at around 2 - 3% per year, I can safely say my asset will be appreciating sometime in the near future.

*See the graph to the right for the inflation rate from 1990 till now.

**Breaking even in terms of monthly payment

This is going to sound too general but any type of property as long as you can account for all the expenses and an accurate projected rent amount, unless you have actual rent amounts, you can use that instead. Find someone you can trust to give you accurate information. Don't rely on hearsay. Lastly, do your own research!

*A general rule of thumb, if the property is newer, it'll have less issues. Nothing is perfect so you need to set aside a certain amount for expenses to fix issues that will arise. Don't expect not to do anything, you will get yourself into legal battles you DO NOT want to be involved in.

Picture Above is a House in Chino, CA

Just listed April 3, 2014 is on the market for only $419k. It's tenant occupied and the tenants are paying $2,200/month. Newer homes like the one above have far less issues. It could end up saving you lots of money in the future!
You need to understand leverage before you can start looking for properties to buy. What's leverage? Leverage, basically, is financing. The more you can get financed the better. If you pay cash and your neighbor buys a house using VA financing and assumes a loan with 100% financing, I would say he's getting a much better deal and with write offs! Let's not put yourself in that position if you don't have to.

Do you ever see Real Estate professionals write "location, location, location" on their flyers? What the heck does that mean? Simply put, location is the main reason you should buy that particular property. Pay attention to a local Starbucks opening nearby, pay attention to local trends, pay attention to large voltage towers being built, just pay attention! The list is long and therefore I can't list everything here and some of it is just instinct.

Keep in mind this is a basic guide, everyone and every investor is different. If you want to learn more, follow me or contact me below. What I learned throughout my years in Real Estate is that DON'T rely on hearsay as they may dissuade you from the truth. Instead, rely on facts. If you would like more advice or if you are looking for similar investments, let me help you customize a package catered specifically for you and your investment.

*There is no guarantee for any type of investment and there is risk involved. Always consult your Financial Advisor, CPA and/or Attorney first.

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Mike Chou has been involved with real estate and development his entire life. He comes from a family with a long history of real estate investments throughout the United States and Asia, providing him invaluable opportunities in his career. His fluency in Mandarin and English has allowed him to develop relationships throughout the world and help him educate and advise investors outside the local market on real estate investment decisions.

He holds a Bachelors Degree in Finance from California State University of San Bernardino and is not only a Partner/Owner of eTopBroker, Inc., but also a managing partner of The Pointe Investments LLC which specializes in Trustee Auctions and other Real Estate investments.

In the past year, Mike has managed to raise an excess of $20+ million in capital, supervised the closings of 80+ flipped properties purchased through various avenues, and personally closed 200+ REO/Traditional transactions which has grossed about $100+ Million in total transaction dollars to date. Mike has also helped continue the growth of the property management division and investment assets of eTopBroker, Inc. He is now part of a few $10 Million+ investment transaction ventures.