Is anyone investing in Riverside, CA?

Question

Hi, is anyone investing in Riverside, CA?  Curious to know how the market to rent single family homes and multi family homes there?  Please let me know your experience.  I'm looking around the area and would like to get a feel of what its like i.e. if anyone is cash flowing, specific areas of investment, etc.  Thank you!

Paul Choi · Answer

Riverside and Inland Empire are becoming great markets.  Super low inventory (1.1%) in the pipeline and good rental rate increases because of increased demands.  We've been looking at small to mid-sized multifamily there (20-100 units) but still analyzing and comparing with other markets, ie just got in contract for a multifamily in Sacramento, which is a great rental market.

James Gates · Answer

Hey @Sophia Fong, I lived in Riverside for many years and am located just a few minutes away in Redlands. Like many of the posters have mentioned, Riverside is not for cash flow. It has come up a lot since the recession, but there is still likely more upside to the city with all of the new developments happening downtown. I'm actually hosting a small BP meetup in Riverside tomorrow if you are interested shoot me a message!

Matt Ward · Answer

While I agree in a sense, this isn't entirely true.  If you are comfortable making most of your return through appreciation, you can execute a stabilization plan and create cash flow after about 18 months on average.  Certain CA markets/properties will be very attractive to investors who are not locked in on cash flow day.  In addition, because of this facet, the investments should provide large paper losses which could in turn be looked at as a cash flow alternative if it is offsetting cash flow from the rest of an investors portfolio.  Now, I've introduced quite a bit of variables, but hopefully you get the gist.

Paul Choi · Answer

yeah, probably not day 1 but with value add deals, cash flow is highly likely after strategy is implemented by year 2 or 3 if bought right.

Com M. · Answer

It varies neighborhood to neighborhood, but you see rents between $2,250 and $3500.  The chance of finding something cashflowing would require you to buy at 70-80% market value and rent ready.  Almost everything in California will be negative cashflow on the standard 20% down deal.  The money is made in appreciation but holds a carrying cost.

Ali Boone · Answer

In short, you're not likely going to be getting positive cash flow.

Sevag Kolanjian · Answer

@Sophia Fong It's in Downtown Riverside, zip code is 92501. The house is 3 bed/ 2 bath 1500+ sq/ft.

Sophia Fong · Answer

@Sevag Kolanjian Thanks!  Curious to know. Where your SFR is in Riverside?  Thanks!

Is anyone investing in Riverside, CA?

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