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.
There are definitely pockets in Riverside as mentioned. SFRs near UCR as student rentals do work, but it does come down to the type of students you screen to live there as well. Regardless, there will always be surprises, but if you do your research and work your numbers well, investing out here can be profitable
Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
8y
@Nicole Collins oh really? That's actually great to hear because I've had a bit of trouble with lenders telling me that we aren't able to put so little down on a multifamily. SO far we've heard 15% from one and 25% from another. You're scenario is actually exactly what we are looking to get into, and in riverside. Do you mind sharing who you got the loan through and Arnold what rate? If not I understand, but it's sure would make my day! Thanks for sharing
Riverside, CA · Member since 2016 · 37 posts · 19 votes
8y
Hi Todd,
It makes a huge difference if you plan to live in the house as well. Sorry forgot that detail. We got the loan as a primary residence, we lived in one of the units for one year. But yes, you are correct an investment property requires at least 15% down. We got the loan through a broker I work with, His name is Andrew Tiu and is located in Pasadena with Southern California Funding. I've had much more success purchasing with a broker, rather than going directly to a bank. I've made 3 purchases so far, all with brokers. For some reason, I could never get a loan with a bank, they are more strict. Also, the last home I purchased (#3), I called my broker I used for my previous two homes and he said I didn't qualify. I was determined, so called another broker Michael Gutierrez, Fusion Mortgage Lending and I purchased my third home 1 month after talking to that first broker who told me no (nothing had changed with my finances). Again, not sure what happened there, but just some advice, some brokers are more willing to work with you than others. Our rate for that one is 3.875%. We just closed on a single family in February and the rate on that one is 4.85%, so seems rates are increasing slowly.
In the multifamily, we have a long term tenant in one unit (been there 25 years) and two young working roommates in the second unit. Although DT is not far from UCR, I dont think many students venture out to DT to live. When we posted the unit for rent, I dont think we got any inquires from students. But we definitely had no trouble finding tenants, we got at least 50+ calls/emails the first few days it was listed.
Investor · Riverside, CA · Member since 2014 · 239 posts · 177 votes
8y
@Nicole Collins thanks so much for the details! That's actually (once again) exactly what we were looking to do as well, live in half and rent the other. I've been pretty clear with the lenders of our intentions and have gotten approved for single family, but it seems as though they just either don't want to bother with our 5% down for a multi or aren't looking deep enough into the options. Either way your info helps us a ton because I wasn't beginning to believe it wasn't possible. Maybe I'll give your guy a call and see what our options are. We are looking in the downtown area as well and my wife works at UCR so it will be a massive help purchasing in the area. Thanks again for the response! You just fired me back up lol
Riverside, CA · Member since 2016 · 37 posts · 19 votes
8y
@Todd Fithian I definitely recommend contacting Michael Gutierrez from Fusion Mortgage Lending, He is located in Rancho but I believe he lives in Riverside, so he is familiar with the area. He was super easy to work with. Our situation was complicated, and I think that is why our other lender said no. He was willing and patient to work with us as we got everything in order to make the SFR deal happen.
You know what, Im getting things mixed up. We bought the duplex FHA, and we just bought our current house with 5% down. Regardless you should still be able to get a loan at 5% down for a primary residence. But yea, definitely talk to a broker, they are more knowledgeable/creative on how to make deals happen.
Nice! I work at UCR too! I loved living DT, it was a 12 min drive to work.
You will have to be patient, the right one will come if you are looking diligently. We bought in 2017 and 1-2 new duplex listings would pop up on the MLS every week or two. We got lucky with this one because the first offer they accepted fell through, and we put in our offer as soon as it was relisted.
Riverside, CA · Member since 2016 · 37 posts · 19 votes
8y
@Vinci S. UCR has 8,000 employees, so I imagine some do. When I lived DT, our neighbor also happened to be a UCR employee. Other than that I can only assume. I do know that many people live in Canyon Crest, its considered a nicer neighborhood than DT. However, with all the growth happening DT, I can see it become a more desirable place for UCR Faculty and staff to choose to live. There is much more to do DT than in Canyon Crest.
Irvine, CA · Member since 2015 · 29 posts · 4 votes
8y
I work out in Riverside as well. Unfortunately I find that many working professionals do not actually live in Riverside. Many live in Eastvale, Orange County or south Corona. I feel much of Riverside is for working class families. I cannot comment on DT riverside however, as I do not know much about that area. Someone please correct me if I am wrong. Im still learning about this area.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
@Michael Kim anyone who commutes to Riverside from OC is crazy, yes some people will commute in from Corona or Rancho Cucamonga, but a larger portion just live in the nicer areas of Riverside. Woodcrest/ Orangecrest/ Canyon Crest and the areas around Victoria ave.
Commuting from OC to riverside is pretty common in my industry. A lot of the project managers/super intendents in construction make ($100k-$200k) live and choose to live in OC but there is a ton of construction work in Riverside/San Bernadino County. People do it because your "going against traffic".
Riverside is a pretty huge city, I think there are areas with working class families. However, I think the opposite, if you are a working professional, Riverside is a great choice, its much cheaper and there are areas where homes can start at $500,000 and up, as @Aaron K. mentioned. DT used to be a "bad" part of Riverside and if you drive down the streets, you can see areas that are "up and coming". But from the growth that I have seen in the last 10 years, I think that it will be a more desirable place to live (totally just my opinion). Especially with this new generation who wants a more walkable place to live with local shops and restaurants.
Irvine, CA · Member since 2015 · 29 posts · 4 votes
8y
@Nicole Collins Thanks for your input. I was driving through DT riverside yesterday and it does seem like its changing. I was in the mission inn area. I am not knowledgeable about DT riverside at all so I am purely speaking about mission inn area.
I agree with you and @Aaron K. that Riverside is much more affordable, however most professional I know live outside of Riverside, specifically in Corona/Norco, OC, Redlands.
With that said, I think DT Riverside seems to be a good place to invest, although I say this with very superficial knowledge of the area.
The more important thing, in my opinion, is the timing of these investments. I say this because I have seen a steady increase in inventory and decrease in demand. I have a feeling this will continue and investments bought today may be bought at or near a peak in pricing.