Buy and hold in the High Desert Area CA

[Tri Tran]

Hi Everybody,

My name is Tri (tree) and I'm fairly new to real estate business. I'm a working professional and have enough money for a down payment for my first house. I was thinking about investing in the high desert area (specifically Hesperia area) of CA as a buy and hold/rent property. I wanted to know what everybody’s general thoughts and opinions are about investing in this location? Will it be easy to find tenants? Or to sell the house quickly in a couple of years if needed? Basically, is this a good location overall for buying rental properties?

I used to work and live in the area (Victorville) and I could see first hand the growth that the whole area is undergoing. I thought about investing closer to home in the LA/OC area but like many others have said, the cash flow just isn't there.

Some feedback would be great! Excited to get to know most of you on this board as time goes on!

Thanks in advance

[Steve L.]

Tri -

Welcome to BP.

I own houses in Hesperia and surrounding areas. Most of our initial rentals were purchased in Fontana, Rialto, San Bernardino and we expanded to that area in 2010.

We decided to buy there for the following reasons:

1. There is a large supply of 1980+ built houses for a reasonable price compared to rent.

2. It is within 45 miles of my house.

3. Historically the area has had had massive price increases/decreases. You can buy now well under replacement cost.

4. Growth is pretty good right now. Walmarts, Targets, etc.

The negatives:

1. Commuter town. Not a lot of local jobs.

2. The weather is severe. Hot summers, freezing winters, always windy.

3. Much of the economy is subsidized living (disability, retirement, fixed income, etc).

4. The wholesale cost to buy a house there has doubled since 2010. (I'm not complaining about this, but it's tougher to buy now).

The tenant quality is a different caliber than Orange County or LA. Houses rent slower, you have to look for different criteria. Location is extremely important to tenants.

Without knowing your situation I cannot provide much other advise. Feel free to PM me if you want more questions answered.