Stockton investors and owners

16 Replies

What has theexperience been in stockton multi units? What area is preferred and why? I am qualified for the prices there, but not deeply knowledgeable about locales, demographics, and the like. 

@Eddie Bridgett Jr Hi Eddie, Careful in Stockton. Know what type of property you are buying. Understand how you are going to manage it. Understand who your tenants are, how much the can pay, are they reliable? Do you manage yourself, have a local outfit do it? There are a lot of variables. Not trying to dissuade you, there is money to be made, but you need to know what you are getting yourself into. Stay away from D properties. Abraham Bar

@Eddie Bridgett Jr

When it comes to investing in Stockton multifamily, your most important consideration is going to be avoiding areas with high crime. You can do this on https://www.communitycrimemap.com/ -- this is the site the Stockton Police Department directly uploads their crime data to per the local government website.

And mainly, you want to avoid violent crime. Car theft, house robberies, etc. happen in all neighborhoods. Assault with a deadly weapon and shooting on an occupied dwelling tend to only happen in the worst.

Having lived there for over 10 years location is definitely #1 as the neighborhood quality can change pretty quickly from street to street, so make sure you work with someone who really knows the area.

Other than that, be sure to do your due diligence on the property itself as @Abraham Bar suggested.

@Paul Choi is a buddy of mine who does quite well with Stockton multifamily, and can perhaps share some insights. Let us know if you have any further questions and we'll try to get you pointed in the right direction.

Thanks @Wes Blackwell

@Eddie Bridgett Jr I agree with the comments here.  Stockton is block by block and you're best bet is to drive those blocks.  We like north of downtown all the way to UOP area.  We stay away from south of hwy 4.  We have a 16 unit and under contract for a 15 unit currently, both north of downtown.  That area is changing. With the Open Window Project and some other revitalization buzz going on, you can see rehabbed properties as well as population profile shift happening.  There is a good amount of inventory that still needs work so there are value add plays.  Most owned by mom and pops.  The new California State University potentially coming to Stockton is a wildcard and where it could be located.  We are also looking at a 50+ unit in north Stockton.

We are getting good tenants at full market rents. ConC ROI is great as well. DSCR works with 25% down. Looking at more deals with the GRM below 10. Seems like one of the last places within a few hours of the bay area that has attract yield. But, like most places, got to be patient and search for that golden deal where all the numbers align and work. Cannot just buy any MF and expect it to cash flow nicely.

Hi I'm new to the group, do you guys know any investor friendly title company that can do assignment contracts and double closing in Stockton. Thx  @Paul Choi @Wes Blackwell

@Paul Choi . Can you share how you are finding 15 and 16 unit properties at 10X GRM? Are these value add plays? rents below mkt etc?

@David S.

The best way to is to constantly network with brokers and search through listings online.  Honestly those are the only ways short of direct marketing to the owners.  

These are value add plays - mismanagement, rehab work, rental upside, etc.  Turnkey MF are nice but won't get much in terms of forced appreciation unless you are looking to just park your cash somewhere.

@Sang Vo In California you can't "double close" like you can in other states. You must record the purchase of the A-B on one day, and follow the recording of the B-C the next day. It is really important to work with an escrow agent that knows how to do this to make sure it is done smoothly, professionally, and legally. I'd recommend you contact @Shannon Wright at Casa Bella Escrow. She is in So Cal but can do closings throughout the entire state.

I am looking for a property management Stockton for  a 8-10 uint MF, who has experience in the area. Any references?  

I was also thinking of getting into the Stockton MF. House hacking would be the idea project for myself, but looking into starting next year. Thanks for the great information everybody!