San Francisco, CA · Member since 2014 · 161 posts · 26 votes
I am planning to invest in Vallejo, CA. Any neighborhood that are recommended/to avoid? Airbnb is legal in this city and being at the for of Napa, it might be interesting?
Investor · Vallejo, CA · Member since 2016 · 72 posts · 25 votes
10y
I've been living in Vallejo for approx 18yrs but I'm from SF. Although, there are areas with high crime things have changed a lot in the city. Just like any other city there are pockets with bad areas. Within those same areas there's a small radius that may be good. For ex. in the crest is known for high crime and violence but there are some newer homes within that same area that are decent and very quiet blocks. I currently own a home in one of the areas that was listed as a bad area but it's near the marina and it has appreciated drastically over a short period 2.5 yrs. I can't believe it. I'm currently looking to purchase another home in Vallejo but it's very competitive/expensive right now. It's gonna be hard to get good cash flow but I personally believe the appreciation potential within the next year or two will continue. The city has invested in to improving the transportation facilities near the marina and currently making road improvements. This is another sign that the city is improving. They also hired more police officers within the last year. My mom owns a home in Glen cove and yes its great in that area but expensive. If you can get a deal over there you'll definitely cash flow and the home will appreciate in my opinion. I'm hoping Vallejo becomes a mini version of Sausalito. Hopefully this information was helpful, Please fell free to reach out to me if you have any questions. @Brian Gamido @Christian Dowell
Benicia, CA · Member since 2015 · 27 posts · 9 votes
10y
Hey Matt,
I am a Vallejo native - Vallejo is a tough area. While the RE market is definitely picking up there, it's home to some of the most dangerous areas in all of California. What type of investing are you interested in? Flips? Buy & Hold? Short-Term Rentals (AirBnB)?
Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
10y
I would recommend looking into the Fairfield area. Vallejo was hit rather hard and has really turned a different direction. If you are going to focus on that find an area that is closer to public transport going to other feeder cities and check out the crime stats on any neighborhoods. Clearlake seems a little better too
Benicia, CA · Member since 2015 · 27 posts · 9 votes
10y
@Matt Smith I can't say that I have looked much into Short Term Rentals like AirBnB in Solano County. Out of the three Solano County cities you mentioned - Vallejo, Fairfield, or Benicia - my gut feel is that Vallejo will cash flow best. but a a cost due to the challenges of crime & the economy there.
In general, the safest & nicest area of Vallejo is known as "Glen Cove" - if you look at google map, it is bordered on the North by 780, on the West by 80, on the East by Benicia State Park, and on the South by the Carquinez Strait. There are a few exceptions within Glen Cove, specifically on Magazine Street heading East, but in general this is your best bet.
I know there are condos that are for sale in that area that might be a good first bet for an AirBnB, but make sure the numbers work out. What made you want to do AirBnB in Solano County v. San Francisco, Berkeley, Oakland, San Rafael, or even Albany? Cost to enter the market?
Rental Property Investor · San Francisco, CA · Member since 2016 · 22 posts · 6 votes
10y
I agree with @Jo-Ann Lapin I would be looking at Fairfield. Vallejo can be very dicey in terms of neighborhoods, and I don't believe there is much demand for Airbnb there. Fairfield to me is more desirable in terms of pricing, safety, and shopping. I would encourage you to explore that area.
San Francisco, CA · Member since 2016 · 2 posts · 0 votes
10y
Originally posted by @Account Closed:
Hey Matt,
I am a Vallejo native - Vallejo is a tough area. While the RE market is definitely picking up there, it's home to some of the most dangerous areas in all of California. What type of investing are you interested in? Flips? Buy & Hold? Short-Term Rentals (AirBnB)?
Hello. I'm interested in Vallejo as well--potentially to buy & hold small multi-family properties. I've heard that Vallejo has crime issues as well. I was looking at the crime map on neighborhood scout: http://www.neighborhoodscout.com/ca/vallejo/crime/
and it seems that, in addition to Glen Cove, North / Northeast Vallejo might not be as bad. As a native would you agree? How would you compare Vallejo to Benicia in terms of investment opportunities. I definitely don't want to deal with areas where crime is high.
Investor · Vallejo, CA · Member since 2016 · 72 posts · 25 votes
10y
I've been living in Vallejo for approx 18yrs but I'm from SF. Although, there are areas with high crime things have changed a lot in the city. Just like any other city there are pockets with bad areas. Within those same areas there's a small radius that may be good. For ex. in the crest is known for high crime and violence but there are some newer homes within that same area that are decent and very quiet blocks. I currently own a home in one of the areas that was listed as a bad area but it's near the marina and it has appreciated drastically over a short period 2.5 yrs. I can't believe it. I'm currently looking to purchase another home in Vallejo but it's very competitive/expensive right now. It's gonna be hard to get good cash flow but I personally believe the appreciation potential within the next year or two will continue. The city has invested in to improving the transportation facilities near the marina and currently making road improvements. This is another sign that the city is improving. They also hired more police officers within the last year. My mom owns a home in Glen cove and yes its great in that area but expensive. If you can get a deal over there you'll definitely cash flow and the home will appreciate in my opinion. I'm hoping Vallejo becomes a mini version of Sausalito. Hopefully this information was helpful, Please fell free to reach out to me if you have any questions. @Brian Gamido @Christian Dowell
I am a Vallejo native - Vallejo is a tough area. While the RE market is definitely picking up there, it's home to some of the most dangerous areas in all of California. What type of investing are you interested in? Flips? Buy & Hold? Short-Term Rentals (AirBnB)?
Hello. I'm interested in Vallejo as well--potentially to buy & hold small multi-family properties. I've heard that Vallejo has crime issues as well. I was looking at the crime map on neighborhood scout: http://www.neighborhoodscout.com/ca/vallejo/crime/
and it seems that, in addition to Glen Cove, North / Northeast Vallejo might not be as bad. As a native would you agree? How would you compare Vallejo to Benicia in terms of investment opportunities. I definitely don't want to deal with areas where crime is high.
Brian - First off welcome to BP, it looks like this is one of your first posts! Glad to have you hear, be sure to check out the podcast as well as a few of the literary resources, they are excellent for familiarizing yourself with the jargon & concepts frequently thrown around on BP Forums.
To get to the meat of your post, Vallejo definitely has crime issues, there is no doubt about it. Glen Cove & North/NorthEast Vallejo are much safer areas, but JaNae is correct, these are more expensive areas.
In my opinion, it depends on the type of investing you are interested in. I am primarily a Buy & Hold investor focusing on rental properties - for me Vallejo is a no-go for two reasons: high crime rate and little to no cash flow.
For an investment that is focused on natural appreciation (as opposed to forced appreciation) of the residence, then Vallejo might be feasible as JaNae has indicated, as this is a city whose real estate market is getting bolstered by the strong SF economy and continues to grow. However, I don't choose to invest on natural appreciation, as I cannot predict the market, I cannot guarantee that my investment will increase, and I have little control that I will be able to increase the value of that home.
That being said, if you can find a deal in which you can force the appreciation up quickly by via flipping the house, then there is definitely a market to do so in Vallejo. Nonetheless, I would be careful when running your numbers, be conservative in your comp estimates, and be sure you work with a realtor or someone who knows Vallejo real estate well.
What type of investing are you interested in?
Please reach out if you have any further questions on your real estate journey!
JaNae--thanks for the area insight! It's always helpful to talk with someone living in an area that is a potential investment area. I live in the city so I'm just starting to get more familiar with Vallejo andthe surrounding area. It seems like certain pockets are not as crime-ridden as others and present potential opportunities (although pricing is competitive). I'll keep an eye out for those. Thanks!
@Account Closed
Christian--thanks for your insights as well! I am beginning to build my real estate investing chops and your thoughts and considerations are invaluable. I live in the city and I, along with close partners, are looking for good entry-level markets in or around the Bay Area. We'd like to start off with a buy & hold deal on a small multi-family property (2-5 units) with minimal renovation required and positive cash flow.
I agree with your investment preference of forced appreciation over natural appreciation since there is less betting on the market. All that being said, what other regions in and around the Bay Area do you think I should consider? I know the Bay Area market was hot in recent years so I want to be mindful of potential corrections in the market. Thanks!
Sounds like we share common interests I am interested in a similar criteria - multi family buy & hold with some renovation (but not major work, like foundation repairs), but I have been struggling to find anything in the Bay Area that is has any meat left on the bone. Since the Bay Area has been such a hot market, both for investors and for consumers, it's been challenging to find markets in the Bay Area that are strong. I have begun pushing my search out towards the Midwest in Kansas City & Indianapolis as a result.
Real Estate Investor · Napa, CA · Member since 2013 · 50 posts · 18 votes
10y
@Christian Dowell
Living and investing in east coast and now living in Napa and searching for the multi's; I find it very hard to invest here. Appreciation will be there but at what cost. Since I have moved here 2 years ago, I am living by the motto I once heard "live where you want, invest where it makes sense"
I live in Bay Area and incest in WI
Formula really works for me so far
Investor · Vallejo, CA · Member since 2016 · 72 posts · 25 votes
10y
Good to know @Bill Takacs. I'm going to look into to this because I own a home in Vallejo. It's my primary but I'm planning to rent it out next spring.