Is Southern California really that bad?
Hi everyone,
I'm a new BP member living in southern California. I haven't quite found my niche yet, but I find myself being really drawn to the buy and hold type of investing.
It seems like buy and hold investing is a bit tougher out here in this area, and that getting a 1% monthly rent to value is not so easy. I'm basing this on what I hear from various podcasts and blogs since I don't have any real experience in the area (other than a purchase I negotiated for my Dad in 2010). Most of what I've seen talked about in Southern California is flipping, rehabs, spec home building, and commercial real estate.
Now I know that someone must own all of these houses people are renting in my area, so how are people finding success? and is it possible for someone like me, who makes a good income but hasn't had time to save large sums of money, to purchase and rent property in an expensive market like this one? I don't mind saving and being patient if I know it will make sense to be a landlord here.
Sure there are cheaper areas around, but still, I would find myself paying upwards of a 150,000 dollars for a small house in a run down, less appealing area. Is out of state investing a legitimate alternative? That seems like it would be a very difficult endeavor.
I'm sure the answer to succeeding in So Cal has something to do with lots of hard work, patience, and experience, as it is with most things. But I would love to hear what some BP members think about succeeding in my area, or perhaps some alternatives to investing locally.
I'm all ears! Thanks guys.
Trevor