Is it possible to buy a duplex in Northern California for $100k?

31 Replies

It is all deal specific. Location determines ultimate profits.
Originally posted by @Alex Gadbois :
Originally posted by @Matt R.:

Cali has some cheap *** stuff scattered all over. Like mentioned above, if there is some significant upside on the arv that always helps. One question any investor might ask, and this applies nationwide, if you are picking up stuff sub 100k in 2016, there might be something fundamental off track with that location for long term investing. (Not always) One bedroom condos could be excluded. Good luck with your search!

 How do you feel about 2 bedroom condos?

Alex.....Jay Hinrichs and Chris Herbert are spot on. The rural areas of Northern California have some deals. These towns still have good rental tenants. You will be far away though. I think its worth the look. If I see any I will share. There is a 5 plex in Willows right now. Off of I-5 freeway. Don't know much about it but its on Craigslist (Chico). Orland has a duplex I think on mls. Both are good priced. Also check a town called Gerber. I have noticed a couple. Not far from red Bluff or Chico. Just some ideas.

If you are a new investor I would get into a small property quickly.  Get your feet wet.  Don't be scared of a problem or ugly property. 

Many of times we over think, over analyze,  people get old and say should of, would of could of....  too late now.

Franklin

Originally posted by @Alex Gadbois :
Originally posted by @Ariel Goldenberg:

From an investor perspective, and if you're looking for positive cash flow, i would look for something out of state. 

With that kind of money as a down payment and with an eligibility for an investor loan (or other creative financing options) you can find duplexes or even fourplexes that will cashflow in the midwest or Texas. 

Yes- it means research, finding connections in a market you don't know and basically a lot of work but hey - that is the price of being an investor and living in Northern CA..

Good Luck!

 How do I acquire properties out of state and not get screwed?

1. Find out what @Jay Hinrichs likes to drink

2. Drive up to Oregon with a car full

3. Stalk Jay with said drinks

4. Listen to everything he says.

Oh, and price in plane tickets and hotel stays for wherever you want to invest - you'll want to know that market backwards and forwards, just like as if you were going to live there. 

There's a duplex by the beach here in humboldt county CA for under 100k. It's in an area that was considered rough a while ago, but is seeing a change and I forsee it becoming nice in the next 5-10 years. The duplex needs a lot of work but is literally on the beach. PM me if you're interested. Otherwise don't count out our little microclimate here in Humboldt. Lots of opportunity. 

Alex

I understand your fear of getting screwed. There is a psychological block when you invest in a property thousands of miles a way, but many California investors do this ( me included) . Again - if your objective is cash flow, I believe it is the way to go. 

In the states I mentioned there are many turn-key investing options.  I think you need to fly at list once to meet with the potential people. Also, and that's the most important thing in this kind of investments -  you need to find the best management company in town. These are the people you're going to deal with in the long term. They will determine the strength of your investment maybe more than anyone else. 

Also, since the ratio of value/ rent is better for cash flow in these places

It allows you to to buy a relatively safer property ( rentability, less repairs) that compensate for the risk you may see in the distance. 

Hope that helps. 

@Alex Gadbois You can research the many Midwest cities that offer lower priced homes and much better cash flow that CA. There are many cities to choose from like St Louis, Kansas City, Memphis, Cleveland. Once you decide on a city , you can research turnkey home providers and pick one. You can always get a home inspection on any home that you make an offer on. You can check with local real estate agents to make sure the value is in the house and your not paying over appraised value. I own out of state and the biggest problem that I have had is the property managers. I had the unfortunate experience with a crooked pm in St Louis and a non responsive one in Kansas City. I now have good property managers so it is much better. Our values in Sacramento will be hitting a peak soon so if you don't buy at a discount, you will have to hold onto the house for a long time and keep the vacancies low in order to not lose money every year.