Affordable markets in California

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Affordable markets in California

Shweta Gupta
Rental Property Investor · Irvine, CA · Member since 2016 · 39 posts · 11 votes
Hi there I am just starting out looking & understanding BP & in real estate. Being in Orange County California Please suggest are there no low investment markets here in this state ? Is 20k not a sufficient amount to start from in California ? For flipping houses. Thanks Shweta
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David Faulkner
Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
10y

I second the suggestion for the high desert. Nice single family homes in Lancaster and Palmdale for under $200k. Better for buy-and-holds that for flipping, though. Moreno Valley in the IE looks interesting for this as well, but I am not familiar enough with that market to tell you for sure if, where specifically, and what it is good for. Another option is your own home if you don't already own one, or even if you do and could cash flow it as a rental and buy another. I suspect you will need a lot more than $20k to start flipping on your own, but may be able to find some experienced flippers that will let you ride shotgun on their deals in exchange for some hard work ... this kind of roll your sleeves up, hands on, local experience is the absolute best way to learn the business IMHO. Good luck!

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  • Adam Pierce
    Real Estate Agent · Fountain Valley, CA · Member since 2015 · 83 posts · 27 votes
    10y

    $20k is a great starting amount if you do a live in flip. If you don't want to live in your investment property, you can always form a partnership and go in together. There are plenty of flippers who would love to work with you.

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  • Joe HomsBusiness Member
    Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Shweta Gupta

    Welcome to BP. There is a local meetup in Lake forest every month that you should check out. http://meetu.ps/2QWCkh

    If you would like to meet up before then and talk about investing let me know. I am in Mission Viejo and can meet at a Starbucks.

    I just finished purchasing my next project at the court house steps and will get started with the rehab soon.

    [email protected]949-625-4533
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  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    10y

    Welcome to BP. I would try and first start mentoring with a reputable professional. There is wonderful real estate group here in Irvine run by Bobbi that is call the women's invest group. They meet once a month and have a large meeting. Start networking there. Tons to learn Hope that helps

    [email protected]
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  • Mark Vejnar
    Investor · Simpsonville, SC · Member since 2013 · 184 posts · 71 votes
    10y
    Check out the inland empire and the high desert. Also all those retirement communities between you and Palm Springs. There's a lot happening in riverside county.
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  • Jiana Bickham
    Perris, CA · Member since 2013 · 40 posts · 13 votes
    10y

    @Shweta Guptaif you look in the Inland Empire area check out Inland Empire Real Estate Investment Club. They meet once a month and are very knowledge and helpful. I went to my first meeting last month and it was great. I'm in the same boat as you are, just starting with 20k to invest. 

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  • Shweta Gupta
    OP
    Rental Property Investor · Irvine, CA · Member since 2016 · 39 posts · 11 votes
    10y

    thank you so much for your input will look into inland empire. 

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  • Shweta Gupta
    OP
    Rental Property Investor · Irvine, CA · Member since 2016 · 39 posts · 11 votes
    10y

    thanks a lot everyone.@Jo-Ann Lapincould you please tell me more about this real estate group.

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  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    10y

    I second the suggestion for the high desert. Nice single family homes in Lancaster and Palmdale for under $200k. Better for buy-and-holds that for flipping, though. Moreno Valley in the IE looks interesting for this as well, but I am not familiar enough with that market to tell you for sure if, where specifically, and what it is good for. Another option is your own home if you don't already own one, or even if you do and could cash flow it as a rental and buy another. I suspect you will need a lot more than $20k to start flipping on your own, but may be able to find some experienced flippers that will let you ride shotgun on their deals in exchange for some hard work ... this kind of roll your sleeves up, hands on, local experience is the absolute best way to learn the business IMHO. Good luck!

    1Reply
  • Bill Manassero
    Rental Property Investor · Mission Viejo, CA · Member since 2014 · 230 posts · 113 votes
    10y

    @Shweta Gupta.  Hi, I'm a fellow BPer from OC.  I would take up @Joe Homsup on a meet at Starbucks.  He is very knowledgeable and just a great guy.

    Another market you might consider is the local mountains (Crestline, Big Bear, Arrowhead, etc.).  Lots of homes in the $125-250K.  Buy and hold is possible but the vacation rental can be more lucrative, just a bit trickier.  There are a number of So Cal BPers that are in that market.

    I personally went out-of-state where $100K can buy you 5 homes.  There are a number of emerging markets that are great buy-n-hold rental markets, plus equity growth.  I am currently in Memphis, Atlanta and Indianapolis and looking at Ohio.  I'm closing in the next couple weeks on a 22-unit apartment in Indy that cost $350K!  Out-of-state investing requires the building-up of strong teams and carefully monitoring but once you work out the bugs the cash flow is steady and significant.

    If I can be of assistance, just let me know.

    Best of luck to you.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Shweta Gupta@Bill Manassero  I would strongly caution you on buying a 20k home in any of the cities Bill mentioned.. those are not appropriate for first time investors or investors who are not seriously capitalized.. this is a very special asset class that takes an inordinate amount of time and energy to be successful at and rarely will a out of state investor buying one of these have the horse power to put the appropriate team in place etc etc.  Stick close to home to start once you have some serious buying power and you want to play in low value assets then maybe give it a go.. but not your first investment with all your liquidity the chance of a total wipe out would be very high

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  • RJ Walz
    Real Estate Professional · San Diego, CA · Member since 2015 · 6 posts · 2 votes
    10y

    Hi @Jiana Bickham, thanks for the recommendation on the Inland Empire Real Estate Investment Club. I moved to the IE about eight months ago and am now trying to get started in real estate investing. I've been looking for a good club where I can network and learn, and this group looks great for this. I just joined the group and I look forward to meeting you at an upcoming meeting.

    0Reply
  • Pete Perez
    Engineer/Real Estate Investor · Renton, WA · Member since 2015 · 368 posts · 120 votes
    10y

    @Shweta Gupta

    To @Bill Manassero's point, Crestline could be a very nice place to invest and certainly is attractive for people to live. I recently visited an open house there and signed up for a mailing list from the sponsored realtor, and that particular home sold very quickly. If you have interest in looking there I can forward you the realtor we met? Just inbox me and I will send you her contact information. 

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