Affordable real estate properties (<200k) near bay area (< 2hour drive)

18 Replies

@Perry Z.

 If you go to a couple of the real estate meetups, you'll know if there's anything in that price range, 10+ people from the meetups will jump on it, with cash...

I live in San Jose and 3 properties in Fresno/Clovis CA (2 hour drive for me) all were purchased in the 125k range. We purchased them 2 + years ago and similar properties go for about 150k now.  Plenty of options if you are looking in the 200k range in and around that area! Good luck

Originally posted by @Peter K. :

Hi @Perry Z. does some buy and hold investing in some of here areas.  He may have some input. 

 Yes, I own properties in Richmond, West Oakland, and East Oakland. I would still buy more in those areas. If you don't mind finding a little more hands-on manager, I think the cash flow is worth it for these areas. I think Peter hit the nail on the head with the low-cost areas..

My favorite property of mine is a 4plex in East Oakland I bought about a year ago. $430K all-in, and does just over $60K/yr in rents. But there are also single family homes in East Oakland and Richmond that would do just under 1% monthly rent/price ratio for under $200k. I still like both those areas...

Happy hunting! And come out and say hi at the SF meetup! (see signature)

Perry Zheng there are opportunities on Stockton under $200k in decent areas. we own a number of rentals in Stockton and can recommend a few areas if you decide to look here.

If you do not mind driving for dollars Perry. I am sure you will find deals in the surrounding areas for around $200K. You can even cash flow buying some properties with no fixer uppers just turn key but don't expect to be buying any 3000 to 6000 homes. 

Originally posted by @Perry Z. :

@Garrett Mayo

One qq: What about Modesto and Stockton is it because distance you didn't invest in those or more of its economic prospects? 

I prefer areas with little buildable land (aka dense already), a reasonable commute to major employment centers (30-50min), and producing cash flow.  

So Stockton only meets 1 of those, IMHO..

1) Too much open land available. There is all kinds of open land nearby, teardowns, etc. Much of the larger returns from the Bay Area come from increasing land value, inability to build, resistance to building (NIMBY), and jobs nearby. I don't feel the same way about Stockton (even though Richmond has its own issues, it meets this criteria.)

2) Not reasonable commute to major employment centers. I know people who commute from there to Oakland or San Francisco for the cheap home. But they usually do that a lot more when home prices are very high. Then Stockton plummets during a crisis. Where is everyone working? Processing/warehouse facilities in Stockton and Modesto? Walnut Creek? Sacramento?

3) Cash flow. It does have this. So if you think rents will hold up in a crisis and can sit on the price swings, at least you'll be collecting paychecks.

4) I also wanted to have my properties mostly in a central area that I could better manage or have someone else manage. So I would have had to dedicate several purchases to Stockton to make it worth my while.. I'm not that sold on it for the long term relative to more core Bay Area.

This is just my opinion. I believe there are some new warehouses opening out there, and other things. I'm not trying to knock Stockton. Those are just the reasons I personally did not buy out there.

J. M.

Gotcha! Oakland and Richmond def qualified the commute + buildable land criteria but I can't make the numbers work to show it's cash flow positive. I am looking at 200k but they all have HOAs of 190-300. Some need fixing. We have to rent them for $1600+ to be cash positive - but that doesn't seem to be the case in my experience. What do you think?

For instance, the rental prices on these properties http://redf.in/1HBx0UC would be less than $1500 I think.. 

Originally posted by @Perry Z. :

@J. Martin

Gotcha! Oakland and Richmond def qualified the commute + buildable land criteria but I can't make the numbers work to show it's cash flow positive. I am looking at 200k but they all have HOAs of 190-300. Some need fixing. We have to rent them for $1600+ to be cash positive - but that doesn't seem to be the case in my experience. What do you think?

For instance, the rental prices on these properties http://redf.in/1HBx0UC would be less than $1500 I think.. 

Almost every place on that list would rent for $1500 or more. When you say "In my experience," what are you referencing for rental numbers? In-place rents might be lower, but look at market rents.

Go on Craigslist on the "map" mode, and set the maximum at $1,400, then $1,500, $1,600 and so on... What do you see? How many units do you see available outside of Vallejo, Pittsburg, Antioch, and further out? How many in Richmond and Oakland? How do they compare to how yours will look after you rehab? Start there.. I think you don't realize how much rents have risen, and how far off market rents are from current rents in most places..

Good luck!

Originally posted by J. M.:
Originally posted by @Perry Zheng:

J. M.

Gotcha! Oakland and Richmond def qualified the commute + buildable land criteria but I can't make the numbers work to show it's cash flow positive. I am looking at 200k but they all have HOAs of 190-300. Some need fixing. We have to rent them for $1600+ to be cash positive - but that doesn't seem to be the case in my experience. What do you think?

For instance, the rental prices on these properties http://redf.in/1HBx0UC would be less than $1500 I think.. 

Almost every place on that list would rent for $1500 or more. When you say "In my experience," what are you referencing for rental numbers? In-place rents might be lower, but look at market rents.

Go on Craigslist on the "map" mode, and set the maximum at $1,400, then $1,500, $1,600 and so on... What do you see? How many units do you see available outside of Vallejo, Pittsburg, Antioch, and further out? How many in Richmond and Oakland? How do they compare to how yours will look after you rehab? Start there.. I think you don't realize how much rents have risen, and how far off market rents are from current rents in most places..

Good luck!

Hey J.  Good stuff on the rent data.  I've never used map mode on Craigslist.  I'm up your way a few times a month, in Berkeley and Marin now that the grandgirl is here.  Getting harder and harder to stay away......  I'm researching the Bay Area markets.  The Richmond Challenge is still on my mind.

Any meet ups on the calendar coming up?

Originally posted by @Account Closed :
Originally posted by @J. Martin:
Originally posted by @Perry Zheng:

@J. Martin

Gotcha! Oakland and Richmond def qualified the commute + buildable land criteria but I can't make the numbers work to show it's cash flow positive. I am looking at 200k but they all have HOAs of 190-300. Some need fixing. We have to rent them for $1600+ to be cash positive - but that doesn't seem to be the case in my experience. What do you think?

For instance, the rental prices on these properties http://redf.in/1HBx0UC would be less than $1500 I think.. 

Almost every place on that list would rent for $1500 or more. When you say "In my experience," what are you referencing for rental numbers? In-place rents might be lower, but look at market rents.

Go on Craigslist on the "map" mode, and set the maximum at $1,400, then $1,500, $1,600 and so on... What do you see? How many units do you see available outside of Vallejo, Pittsburg, Antioch, and further out? How many in Richmond and Oakland? How do they compare to how yours will look after you rehab? Start there.. I think you don't realize how much rents have risen, and how far off market rents are from current rents in most places..

Good luck!

Hey J.  Good stuff on the rent data.  I've never used map mode on Craigslist.  I'm up your way a few times a month, in Berkeley and Marin now that the grandgirl is here.  Getting harder and harder to stay away......  I'm researching the Bay Area markets.  The Richmond Challenge is still on my mind.

Any meet ups on the calendar coming up?

 Hi K.,

I just started using this CL map technique recently, and I like it, although I've been using the map for awhile. It just popped up quietly about a year or so ago. Here's the presentation I gave at my last meetup group.

http://www.meetup.com/REmeetup/files/

 I'll be scheduling another one soon (every month in SF), but you have my number, right? Send me a text or call next time you're up here and let's meetup for a little bit. I'll be down on the Central Coast next weekend, but will be wrapped up with family stuff..