2016 California - Feasible rentals at home or look out-of-state?

2016 California - Feasible rentals at home or look out-of-state?

Southern California · Member since 2015 · 11 posts · 3 votes

Hi folks - I'm new to BP and to REI in general and am looking for some advice as I get started. I purchased my SFR back in 2007 (what terrible timing!) in Los Angeles county and plan to continue living here for the next few years, at a minimum. I'd really like to start investing conservatively in cash-flow-positive rental properties, while keeping my regular job, and with an eye towards retirement in 15-20 years. Unfortunately, I didn't have the reserves to invest during the last down cycle. Now that I do the SoCal market has of course rebounded. So, what's the best play for me right now?

  • Keep saving and wait for the market in Southern California to crash again - but who knows when that will be?
  • Invest out-of-state in an undervalued area with all of the challenges that being remote might bring
  • Try to find a deal in Southern California in 2016. Is this even feasible though? If so, in what regions and how?
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Real Estate Agent · Los Angeles, CA · Member since 2015 · 201 posts · 82 votes
10y

@Justin M. finding properties here that cash flow and still have a decent cash on cash return can definitely be difficult. I have found myself investing in Palm Springs vacation rentals because of this.

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  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y

    @Matt R.

    Easy....anything outside of the AV and outside of CA :) Okay, not anything. My faves right now are Chicago, Indy, KC, etc.

  • Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    10y

    @Ali Boone I see you have properties for sale in Chi Town. Great city for sure. Chicago is one of the cities that is considered less landlord friendly than even Cali. 

    Palmdale and Lancaster both have had more population growth since 2000 than KC, Chicago and Indy combined or individually. I am not talking percentages...but in actual humans. That surprised me since ChiTown has a couple million population alone. Both Palmdale and Lancaster appear in top 25 USA pop growth cities often. 

    Like you mention AV is a one industry town, it is sort of but 30% are LA commuters so there is more to that story if one cares to examine. I understand you are not a personal fan living or buying or renting in AV. Some have done very well and some have got killed so results may vary:)

  • Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y

    @Matt R.

    Cool!

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