Help! Moving from illinois to Cali

60 Replies

I will be moving to Sacramento California soon but i am scared to do so, in a sense that i won’t be able to buy any investment properties. i heard its a bad market, Illinois have really high property taxes compare to Sacramento but there are a lot more foreclosures here. Can someone help me break down the pros and cons. Am i overreacting or this is legit a bad decision for me to move.

Reason for my move is that i want to be closer to my family.

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@Rahul Handa Welcome! This decision depends on many things. Have you ever lived in California in the past? Where is your family located and how important is it for you to be near them? Here is my take. There are many other places to make a go if it in the United States and places with a much easier entry into the real estate market. I believe people should live life and try different places if possible. I would encourage you to try California just to see what California is like. Will be tough but worth the experience to live in California in my opinion. California is its own market and has so much to offer an individual. I always encourage people to go live in a big city once in their life to gain different perspectives and vice versa for city dwellers. At any rate I vote for you taking on the experience and living in California while you have the chance. With that being said you would have much more business luck starting out in say Indianapolis, Ohio and other Midwest cities. Make sense? Good luck and keep us posted.

Originally posted by @Dylan Vargas :

@Rahul Handa Welcome! This decision depends on many things. Have you ever lived in California in the past? Where is your family located and how important is it for you to be near them? Here is my take. There are many other places to make a go if it in the United States and places with a much easier entry into the real estate market. I believe people should live life and try different places if possible. I would encourage you to try California just to see what California is like. Will be tough but worth the experience to live in California in my opinion. California is its own market and has so much to offer an individual. I always encourage people to go live in a big city once in their life to gain different perspectives and vice versa for city dwellers. At any rate I vote for you taking on the experience and living in California while you have the chance. With that being said you would have much more business luck starting out in say Indianapolis, Ohio and other Midwest cities. Make sense? Good luck and keep us posted.

 Thank you for your response

I have never been to California but my dad has lived in Santa Clara in the past. We as a family are really close and made a decision to move there. I don’t mind moving there as well and its really important for me to be close to my family.

Illinois real estate is not great as well. We have really high property taxes which makes it hard for cash flowing properties. I compared the two; Sacramento CA has .8% property tax and Chicago has 2.26%. 

Originally posted by @William Green :

@Rahul Handa

Are you looking for flips or rentals?

I live and flip in SoCal but do 100% financing on loans for flips all over Cali, including up in NorCal quite often and see investors pull down some great numbers.

 I will be doing both. Mostly long term rentals.

Is it hard for you to find properties in cali? Are you familiar with Sacramento and near by cities? If so then do you think its a decent place to buy properties for long term.

@Rahul Handa Looks like you will be coming to California! Once people get over the sticker shock there is plenty of money to be made in Sacramento or any other area in California. Just takes hard work and persistence. The deals are out there. Good luck and Welcome!

Originally posted by @Noel R. :

Anything is possible. How willing are you to put in the work? 

 Yes, i am willing to do whatever it takes to make it possible. Just a little nervous since i am not familiar with the state.

@Rahul Handa  With home prices in Cali generally being pretty high the average cap rates aren't too thrilling, BUT there are certain areas/properties that are exceptions to this. I have a rental in california my partner and I purchased for 375k that grosses 80+ thousand a year. 

One great think about sacto and many other areas of norcal is that its appreciating quickly, you may not get exceptional rents but you should have good equity in a short amount of time if the market keeps on the projection. 

Rates are low and there are ways to get loans based off the rental income capabilities of the property instead of your income and credit.

So I think you are making a great move coming to california and there will be plenty of opportunities for you here. Its a big state with lots of areas of opportunity. 

Originally posted by @William Green :

@Rahul Handa With home prices in Cali generally being pretty high the average cap rates aren't too thrilling, BUT there are certain areas/properties that are exceptions to this. I have a rental in california my partner and I purchased for 375k that grosses 80+ thousand a year. 

One great think about sacto and many other areas of norcal is that its appreciating quickly, you may not get exceptional rents but you should have good equity in a short amount of time if the market keeps on the projection. 

Rates are low and there are ways to get loans based off the rental income capabilities of the property instead of your income and credit.

So I think you are making a great move coming to california and there will be plenty of opportunities for you here. Its a big state with lots of areas of opportunity. 

 Thank you so much and it def helped. 

Point of entry is pretty high, cash flow is pretty low and cost of living is ridiculous.

I’m sure you’re moving for all the right reasons, but it’s not the first place I would recommend to invest your money.

To your success! 

I left Chicago for LA years ago. Never moving back.

It's the weather. Your weather will vary in Sacramento.

But imho California is the best, forget the naysayers, they know nothing. 

Yes, it costs more, but you can make more so it evens out.

@Rahul Handa we have a friend who is a realtor up in the Sacramento area and has lived there for over 20 years. He’s very trustworthy and has shown me several properties up there including Folsom and other bedroom communities with good employers nearby and good prospective tenant pools.

My take on Sacramento city area is that there are some high-end neighborhoods that would give you a hassle free tenants but not good cash flow. Also, some of the nice Victorians I saw in the city needed a lot of work and I wasn’t very comfortable with the types of tenants is on there. They left the condition of the units in disrepair and filth. But I don’t live up there so I couldn’t check on the opportunities very consistently.

Let me know if you want an introduction to our realtor friend up there. He will give you a more up-to-date assessment of what’s going on. One more thing, it is the state capital so there will always be government jobs up there.

Originally posted by @Gargi Keeling :

@Rahul Handa we have a friend who is a realtor up in the Sacramento area and has lived there for over 20 years. He’s very trustworthy and has shown me several properties up there including Folsom and other bedroom communities with good employers nearby and good prospective tenant pools.

My take on Sacramento city area is that there are some high-end neighborhoods that would give you a hassle free tenants but not good cash flow. Also, some of the nice Victorians I saw in the city needed a lot of work and I wasn’t very comfortable with the types of tenants is on there. They left the condition of the units in disrepair and filth. But I don’t live up there so I couldn’t check on the opportunities very consistently.

Let me know if you want an introduction to our realtor friend up there. He will give you a more up-to-date assessment of what’s going on. One more thing, it is the state capital so there will always be government jobs up there.

 Thank you and yes def. it will helps me out a lot.

Originally posted by @Lee Bell :

I left Chicago for LA years ago. Never moving back.

It's the weather. Your weather will vary in Sacramento.

But imho California is the best, forget the naysayers, they know nothing. 

Yes, it costs more, but you can make more so it evens out.

 Thank you. Weather do sucks here, summers seems to be the only time we get a decent weather.

Originally posted by @Tony S. :

You have picked the worst 2 states to invest in the country !  Lowlife freebee states  run by ; you be the judge of that .......

 Ikr. Seriously it seems like a lose-lose situation. But i’m determined to find a way to make this work.