Do you have $2M cash that you don’t need for the next 2 years? Are you tired of watching the HGTV’s Fixer Upper brothers convert dumps to dream homes? Well, Los Gatos might be a nice playground for you since there are some lot deals here that come with decent opportunities for long term gain. These opportunities also offer decent income as well if you didn’t need to exit right after the rebuild.
But here’s the details on you can spend your $2.5M cash in Los Gatos:
Lot or Home: There are good opportunities in some pockets of Los Gatos where you can buy an older fixer upper for $1.1-1.3 million dollars. And let’s not get confused. These are lot deals and you are buying a tear down home.
Fight with City Hall: If you are clever you will find away to avoid the Los Gatos’s notorious planning commission who could stand your remodeling plans for years without giving you a good reason for it. It will cost you a good designer who knows the ropes around the zoning guidelines. So, you would be out $30-50K for design and permits.
Rebuild: After the permits are issued and you have negotiated a sweet deal with your reliable builder to build you a 3,500 sqft home, then comes the hard part.
Sell or Rent: You can rent a 3,500 sqft home anywhere from 4,500 to 10,000 depending on the amenities. We are renting a very old house in Los Gatos for $3,500 per month so this is not speculations.
If you decided to sell you can sell the home for a cool $3-4 million dollars for a some quick profits. Or you can do what our smart investors are doing which is to rent these homes to executive tenants and ride the market towards appreciation.
That in a nutshell is what you can do in Los Gatos if you have the cash and the initiative to build wealth in Real Estate.