Stockton CA
Considering investing in SFRs in Stockton CA.
Would like anyone who is already in that market to give their opinion on:
areas to avoid, crime, rental market, investment clubs, specific properties, etc.
Most Popular Reply
Hey @Mohit Madaan, I actually grew up in Stockton and although I live in Southern California now, I do quite a bit of investing there. I've done about 20 flips there since April 2012. I agree with Kyle, the city does have a pretty bad name with out of towners, but that has always made the competition a lot lower for us that know the area. With that being said, there are A LOT of folks who have lost money in Stockton because they buy in the right area but on the wrong block. Literally one block could adjust an ARV or a rent rate pretty drastically if it is a gang neighborhood or a rental block.
When I flip, I prefer to stay north of Harding Way and in Central Stockton, I try to stay West of El Dorado St. I have done most of my flips in Central and North Stockton.
There have been a lot of hedge funds and international funds buying up property in Stockton lately and their purchase criteria is simply a very passive cap rate. These funds are bidding whatever it takes to get their 5% cap and in many instances, it has meant that they will bid turn-key purchase prices for properties that are HEAVILY distressed. Because of some of these numbers, I haven't bought much in the city since June of last year.
I'd be glad to answer any questions about location and contractors in the city and help however I can. Feel free to colleague request me or email me directly.
Happy Investing Everyone!
Jake Leicht