What is your take on the potential of Central Coast investing particularly Monterey County and specifically Salinas,Marina,Monterey, Watsonville,Prunedale, and Gilroy areas? What do you think about investing in these towns instead of investing in the more obvious attention grabbers like SF,LA,SD?
there is the occasional deal,but most of the time the numbers don’t make sense.
Your best bet is to find a complete dump and rehab. But even then it will be hard to do.
At least the area will continue to appreciate for the foreseeable future. Silicon Valley is still growing and some of that money is trickling into Monterey County.
There are deals to be found all over the state but you have to find them at the right time and act quickly usually with cash to pick them up. A rehab project like Greg mentioned above might be a great option or if you get something that is a deep value add with an increase in rents would be a great play. The issue is most properties in our area of San Luis Obispo County and even up into Monterey County is that multifamily properties are priced at around 4 CAPs which leaves less meat on the bone for much of anything unless you're betting on appreciation way down the line but we are already at an unsustainable market, we should see a shift in the coming months because people can only stand to pay so much and eventually will realize they are overpaying or will find somewhere cheaper to purchase properties with better returns.
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