Irvine, CA · Member since 2015 · 29 posts · 4 votes
Anyone invest in the Riverside, CA area? I was hoping to hear peoples opinion about specific areas in Riverside for buy/hold. Any areas to stay away from?
In particular I was looking at homes off of Magnolia/La Sierra. Would appreciate any insights into this area and any other areas in Riverside.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
@David Stuart the downside to investing in downtown Riverside isn't new construction but rather the age of the buildings you would be buying, they could easily be over 100 years old which can cause all kinds of problems.
Pasadena, CA · Member since 2016 · 41 posts · 20 votes
8y
We're under contract with a duplex to temporarily house-hack in downtown Riverside. It's not the cheapest but seems to be one of the few places in broader Southern California where' it's possible to buy and hold.
There's a ton of development happening (look up riversidefoodlab.com) and more happening downtown. There are several good colleges and quite a few industry centers for employers. I'm bullish on the area.
Investor · Corona, CA · Member since 2014 · 746 posts · 372 votes
8y
I live in Corona and Riverside is definitely a great growth market. With 325k population, it's already a pretty big city. More young professionals and families are moving there due to cost, location and still within commuting distance to LA.
Pasadena, CA · Member since 2016 · 41 posts · 20 votes
8y
@Daniel F. Harb Definitely - the duplex is 460k - two separate houses, a 1/1 and 2/1 in a really solid rental area (Downtown.) There are likely better deals to be had off-market or requiring rehab, but I'm happy with the numbers.
There have been solid deals popping up this year, many have been triplex or 4-plex - those have different FHA qualifications related to the rents they bring in, so definitely run your numbers.
Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
8y
I rehabbed a home in Jurupa valley and did very well. That seems to potentially be a nicer pocket of Riverside. Also, purchasing by the UC could be a nice spot to buy and hold. They have a med school there now and seem to continue to want to better themselves as a University.
ARRT, RT(R) / Rental Property Investor · Newport Beach, CA · Member since 2017 · 360 posts · 242 votes
8y
Thank you, @Sean Durham, for the information! So great that you are happy with your numbers. I will definitely keep touch about my Multi~Unit adventures. Still vacillating between a Multi here, or out of State. Trying to do my DD.
Thank you so much, Sean, and have an excellent Thanksgiving!
Diamond Bar, CA · Member since 2017 · 12 posts · 2 votes
8y
Sorry I hope it isn't against the rules to revive a 8-month old thread. But I'm interested in investing in Riverside as well. I don't have a lot of resources (maybe just $100-200k). Was thinking of just buying a super cheap $200-250k condo around UCR and count on mostly rental income. And if value of property increase as UCR grows, even better.
Any thoughts on that idea? My fear is that there's plenty of open space around UCR and Riverside in general. So if housing demand is big enough there easily could be new instructions that will indirectly lower price of the old condo I purchase.
Investor · Los Angeles, CA · Member since 2014 · 285 posts · 142 votes
8y
@David Stuart I'm not super familiar with Riverside, but thinking of investing there. I'm under contract for a 3-bed SFR close to Downtown in the high 2s. I would recommend this area. It is affordable, has a lot of character, is walkable, and close to cool eateries. I'm not big on condos near UCR. There are too many of them and I'd think it would be hard to differentiate yourself and you'd have a lot of turnover.
Diamond Bar, CA · Member since 2017 · 12 posts · 2 votes
8y
@Lee L. thank you for your insights in the area. I can see why UCR might not be ideal. Students, I hear, are not good tenants. They come and go and are kind of destructive.
Ideally I want to invest in a small condo/apartment that appeal to UCR support staff or teachers -- people who are there for the long term (and are guaranteed parking so they are willing to live outside of walking distance).
Your description of downtown sounds very nice! Glad to hear you are bullish on the area. I've been to Mission Inn before and it is gorgeous area!
May I ask, what do you see as the possible "downsides" of investing in Downtown Riverside (versus other parts of Riverside or SB county)? Are you ever worried that extra housing could be easily built in the surrounding spaces to devalue your property?
I guess one way to counter that is to only invest in property that is close to some kind of amenity that is not easily duplicated by a new development -- like good freeway access, good restaurants (as you pointed out), good cultural centers, etc.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
@David Stuart the downside to investing in downtown Riverside isn't new construction but rather the age of the buildings you would be buying, they could easily be over 100 years old which can cause all kinds of problems.
Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
8y
Great thread. Me and my fiance are ready to pull the trigger on a property in Riverside as we speak, but it seems that unless youre finding off market deals, the numbers just dont work. Any tips?
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
@Todd Fithian it depends on what you are looking for as to whether the numbers work. If you expect KC or Cleveland numbers it isn't gonna happen but if you are looking for slightly better than LA or SD you will find quite a bit.
Investor · Los Angeles, CA · Member since 2014 · 285 posts · 142 votes
8y
@David Stuart Have you looked into where the UCR staff and teachers stay? What kind of amenities are they looking for? You should base your search a bit on properties that fit those needs.
I've also heard that students often don't make very good tenants but they can be cash cows in the right market.
Why a condo ? You can probably buy an SFR. I'm just not a big fan of condos. Especially when there are so many of them in the area ... and they're building more ... one that will have an even better pool and gym. When you sell, similar units would be up for sale. I'm just not big on that ... just a personal thing I guess.
I'm trying to convince myself (rather successfully) to go through with this deal. it's a craftsman home. I've always wanted a craftsman home. Downtown Riverside has good housing stock at an affordable price point. As housing gets more expensive the more west you go, it makes Riverside a more attractive option for homebuyers, so I see room for growth, especially in the Downtown part, which has a lot of cool amenities, things that younger people like to live close to.
Diamond Bar, CA · Member since 2017 · 12 posts · 2 votes
8y
@Lee L. I have tried posting in some student forums, but haven't gotten specific responses so far. Will keep trying though! I agree SFR is preferable. I especially hate paying HOA. But my budget is only $100-200k, and would prefer not to take out a mortgage.
Here's my take on Riverside. Studies show international trade will increase steadily in the next two decades (trade war or no trade war). And Los Angeles and San Pedro harbors are the main gateways/conduits for all that increased trade. There will be more and more companies building big distribution warehouses in Riverside/SF/Redlands/Hemet. And I don't think the new jobs are all low-level labor. A lot of these are smart warehouses using robots. There will probably be a demand of skilled workers or even programmers.
This is why I think UC Riverside is the key to the region, since companies like Amazon will want some educated technicians and will hire right out of that school. That will attract other tech companies to come invest and maybe turn UCR area into a mini tech hub.
To give you a better context for my questions, here's my situation.
Resources: I have $100-$200k to invest. It's every penny I have plus some borrowed from family without interest.
Goal: Not looking to get rich quick. Just want a safe place to park this money with virtually no risk, small bit of income, and moderate possibility of increase in value of the home. Most important thing is I don't want to buy a house that might dip down in value so low that I lose most of my initial investment.
Strategy: Mainly to generate safe rental income in an area with good price-to-rent ratio, with moderately good prospect of increased housing prices. Riverside and Inland Empire seem like a good pick.
Timeline: Doing research now and might look seriously at start of 2019.
Great thread. Me and my fiance are ready to pull the trigger on a property in Riverside as we speak, but it seems that unless youre finding off market deals, the numbers just dont work. Any tips?
Are you saying the rental income expected will not cover the cost of maintenance, insurance, tax, hoa, etc? I did similar calculation and find that the margins are pretty thin (like if I had 70% occupancy rate instead of 90% it won't work). But I'm a novice so my calculations are probably not great.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
@David Stuart his calculations aren't working because he has to pay a mortgage in addition to everything else, you are looking to eliminate that cash flow suck.
Riverside, CA · Member since 2016 · 37 posts · 19 votes
8y
I purchased a duplex in downtown Riverside. Two detached 2bed, 1baths for $390,000. Rent is $1500 each. Ive been staying in the loop on the development in this area and a lot is going on. I think its a great area to invest. The prices are high, but still low enough to at least break even, and values are definitely increasing steadily to provide that appreciation. Of all the areas in the IE, I think this is one of the safest places to invest (in regards to money). Versus like San Bernardino where you can get more for your money, but really cant see any future potential/growth.
Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
8y
@Nicole Collins Thats awesome Nicole! If you dont mind me asking, how much did you put down on that property? also, how did you go about finding that property? Thanks for any help
Investor · Los Angeles, CA · Member since 2014 · 285 posts · 142 votes
8y
@David Stuart Thank you for sharing your thoughts about the growth prospects of the IE. While I'm not entirely sure how the job market would play out in the Riverside area because of international trade, it's definitely a plus for the area. How many of those jobs will be good paying jobs is a question for me. But I see the area poised for population growth, driven substantially by its affordability, its improving amenities and quality of life, while still being relatively close to OC and L.A. In other words, "drive until you qualify". It's still possible to buy a cute house here in a decent neighborhood if you make $50K - $70K a year. Long term, it would be probably be a good investment. However, I don't think the market is good for buying and holding right now. But as @Nicole Collinspoints out there are still some multi-families where the numbers work decently.
As for the SFR I'm thinking of purchasing, I'm not planning on holding it for very long, so it might kind of be a flip. I'm pretty much itching to start another project. But if the market tanks or stagnates, which I think is a real possibility, the numbers work well enough such that I could hopefully rent it out and break even (with 35% down).
If I were in the market to invest $150K+ right now, I would probably finance into something bigger, and in a different area. Maybe a triplex in West Adams, Lincoln Heights, McArthur Park or around USC. There are plenty of young high-income folks there who love enjoying life and spending all their money on rent. Or perhaps a 4plex in Long Beach. Frankly, I see more potential in those areas than Riverside, but you'd to be willing to take out a mortgage.