Investor · Fort Lauderdale · Member since 2014 · 51 posts · 15 votes
Hey Guys,
Any insights on how the rental market and returns are for Multi-families in Fresno?For what I have seen so far the returns are far greater than here in Los Angeles and the economy and job growth are really picking up there.
Any advice on good areas to invest?
Any RE investor meetings to exchange knowledge and network?
Does anyone knows a good PM and an investor friendly RE agent to recommend?
I am thinking about coming up there in the next few weeks to check some properties.
Iv'e been investing in multifamily units Fresno for 15 years now and I have found that there are many deal to be found. Right now , it is a little harder to find good multifamily deals - but they do exist here. North of Herndon is really nice of course ... but north of Shaw is not bad either - for many people Shaw is the division point between the "good" part of Fresno and the not so good part - but there are always exceptions to the rules - there are some nice pockets of neighborhoods that are south of Shaw. I have spent a lot of time driving around different areas and have been surprised to find that areas I thought were bad ( on the map) were actually nice when you drive it. There are definitely a lot more multiplexes available south of Shaw than there are north of Shaw - so there are plenty of opportunities to find deals - it also depends on where you are willing to invest - some investors stay away from areas south of shields, but for those with a little thicker skin - there can be some good money to be made - as was stated earlier - getting your rent on time every month from Section 8 can turn out to be a lucrative proposition. I would be happy to help show you what's currently available in the Fresno area and can get the rents for you too ( in most cases)
Right now there is duplex north of Shaw that is getting $1676/mo - asking price is $184,500
By comparison, you can also pick up a fourplex just south of Belmont getting $2325 /mo for $195,000
two completely different neighborhoods and demographics - depending on your preferences and objectives either one can be a good deal for you.
There are four investors groups in Fresno you can attend - just check out meetup.com to see which ones work best for you.
best of luck to you - let me know if I can help with anything .. best wishes
There are posts from all over the country on BP. I searched and found this one in about 10 sec. http://www.biggerpockets.com/forums/55/topics/147049-property-manager-finally-joins-bp-fresno-ca
I own a four plex in Fresno and the returns are between 10-12% right now since I just purchased it. The rents are rather low for the area so after I bump them up I may be able to get the returns up to 15%. Fresno is a great place for returns.
As far as areas go, if you want low maintenance, anything north of Herndon ave would be a winner. The farther you go south the lower the economic level and the more work it will take to keep up. However, mine is rather far south which is why my returns are so high. North of herndon is easy, south is higher return.
For a property manager, I highly recomend franklin spees at neighborhood property managment. For a broker, I highly recomend John Berg at John Berg Realtors. If neither of these guys work out let me know and I can give you a few names.
@Jeff Zimmerman I'm not really understanding the comment about lower returns, easy and less maint. above herndon in Fresno? Do you have and example of a property north of Herndon? I know that north herndon is "nicer" ....
Where is your 4 plex in Fresno? Tenants with professional jobs that live north of Herndon can destroy your property just as much of lower income tenants. What is easy and low maint. is collecting rent from lower income properties with tenants on section 8. The housing authority mails me checks, conducts inspections and the tenants have a little fear to protect what they have so they don't get kicked off there voucher.
you make a great point @Franklin Romine . it's all in the screening in my mind, the ideas I gave ariel are purely generalities. my 4 plex is in Lowell. good thoughts on section 8.
Iv'e been investing in multifamily units Fresno for 15 years now and I have found that there are many deal to be found. Right now , it is a little harder to find good multifamily deals - but they do exist here. North of Herndon is really nice of course ... but north of Shaw is not bad either - for many people Shaw is the division point between the "good" part of Fresno and the not so good part - but there are always exceptions to the rules - there are some nice pockets of neighborhoods that are south of Shaw. I have spent a lot of time driving around different areas and have been surprised to find that areas I thought were bad ( on the map) were actually nice when you drive it. There are definitely a lot more multiplexes available south of Shaw than there are north of Shaw - so there are plenty of opportunities to find deals - it also depends on where you are willing to invest - some investors stay away from areas south of shields, but for those with a little thicker skin - there can be some good money to be made - as was stated earlier - getting your rent on time every month from Section 8 can turn out to be a lucrative proposition. I would be happy to help show you what's currently available in the Fresno area and can get the rents for you too ( in most cases)
Right now there is duplex north of Shaw that is getting $1676/mo - asking price is $184,500
By comparison, you can also pick up a fourplex just south of Belmont getting $2325 /mo for $195,000
two completely different neighborhoods and demographics - depending on your preferences and objectives either one can be a good deal for you.
There are four investors groups in Fresno you can attend - just check out meetup.com to see which ones work best for you.
best of luck to you - let me know if I can help with anything .. best wishes
@Mandeep Pabla - feel free to come check out our meetup group to connect with other local investors at https://www.meetup.com/Fresno-Deal-Seekers-Meetup/ you'll meet a lot of great people and grow your network.
@Jay Orlauski, I have been reading and following your post for the last few days. I have been interested in Fresno Markets since early this year but haven't been able to pull the trigger yet. What's you honest opinion as far as the Fresno RE market goes going forward based on your experience? Would you still buy in Fresno with today's cap rates? Btw, I am mostly interested in B+ to C properties.
@Rich Lopes - it's tough to get anything above 5% on B & C properties that are on the MLS right now but there are few good finds every now and then. For example , just today a triplex came on the market with a 7.5 % cap rate potential, but currently earning 5.2% cap rate cause the rents are too low. They are only getting $700/ unit when the avge in the area is closer to $1000. month
@Jay Orlauski, Thanks! That helps. In fact, most of the properties that I have come across have been in the range of $600-$700 rents and have at least 50% Sec8 tenants. So I wonder if they could ever go past $800 at least for a year. I suppose the one you are referring to above is probably not Sec8.
I started accepting sect 8 when I realized they were paying more than I was asking for rent - so I bumped all my rents and started accepting sect 8 - today my payment came on time deposited directly in to my account - I'm a fan so far - of course I screened really well too so I have a great tenant
I live in Fresno, Ca. I have one rental, single family home at Copper River. I now want to expand my portfolio. How do you suggest I get started as to look for properties. Thank you in advance, Lorenzo H.
Hey what's up Lorenzo, congrats on already being started with your SFH. There are a lot of ways to get started, I usually advise my clients to think about their top 2 specific goals first and foremost. They could be cash flowing $100/door/month year one (which is how I generally do it), they could be buying at a 6.5 cap, etc... Based on your goals we can then talk strategy of what kind of property might work for you (MFH, commercial, etc). Lastly we talk about the property class and tenant class you want to be in. After we have that figured out it's good to sit down with the lender(s) that can help you meet those needs to obtain and pre-qual or LOI to fund the deal. Then, we start looking for a place that is worthy of an offer.
That's it in a nutshell, any other questions I can answer?
Guys, I have no earned income. I have two disability incomes. I don't want to depend on those incomes in the future. So I am wanting to expand my real estate income producing portfolio. Maybe house hacking to start, since I own two properties to start with?