Bob: how much was the previous sale? 641 sq. feet is; well, small. 400K, that is about 3K a month? What can you rent for 3K around there? I am sure those are the questions you will get.

This home was last purchased in 1999 prior to the market surge.  It is a smaller home but is also a home not a condo or townhome so you do have the land and yard with it as well.  Not ot mention the privacy.  The rents in this area would not support this home as a rental at 100% financing.  2 bedroom 1 bath homes in this neighborhood are renting in the $2500 and up range depending on the home.

Well, it has a long way to go, if it can only get in the 220o rent to buy ratio it may be a option.

I understand, this home is better suited for a 1st time buyer(owner occupied).  Condos & Townhomes in the area are priced in the same range if not a little higher. 

Thanks. So Cal investment property is really hard to scope out right now. Lot is too small to do something with but good luck with it.

I agree, our area is tough on investment properties right now.  Not to many out there make a lot of sense in the way of the numbers.  It all really boils down to your individual needs and what you are trying to accompish with the property.