Buying a Rental Property in California

[Matt Hrachovy]

Hi All!

I'm from San Diego, California. I'd love to hear thoughts on how much cash should have saved up if i'm looking for buy a property in California. I have a decent amount saved up, but in the areas i'm familiar with (San Diego County and Orange County), I probably couldn't realistically afford a down payment. Does anyone have any recommendations on where to look for properties in California, preferably Southern California? Or should I look out of state? Which truthfully I'd rather not to because this will be my first investment, but I'm beginning to feel like that's my only option. Any replies and advice appreciated, thank you so much for your time!

[Dan H.]

Originally posted by @Jonathan Greene:

@Dan H. what do you think about Escondido? Or even all the way out, Oceanside. I've held in Carlsbad, Encinitas, and San Marcos, but the prices are definitely high for first-time investors. I still think there are deals all over San Diego county, they just aren't on the MLS and don't have their hands up waiting for an investor. But when you find them, they will deal.

@Matt Hrachovy you can find deals out there. I know a few people who are flipping all the time and yes, they are not first-timers, but it's still possible. You will need at least 20 percent down if you aren't going to live there. If you are you could do much less.

 We specialize in Escondido with over half our rental units there.  I know it well and believe it to be a good market for San Diego county but I have no reason to believe it to be better than other blue collar markets in San Diego (el Cajon, santee, lakeside, etc).  Escondido is more expensive than Temecula.  

Plus I do not need more competition in Escondido. :=).  Seriously, we find it challenging to find properties that meet our buy criteria in Escondido.  There is a lot of competition for a few good deals.