4plex In Southern California right now?

[David Flores]

Hello BP family,

I need your help! I currently reside in Riverside California, and was looking to buy my first home, but a 4plex to start my investing endeavor. Everything I’m looking at seems to be so high, and the cheapest I see is in Hemet Ca. Do you think it’s a good time to buy right now? Is Hemet a good place to live? Should I wait for the market to fluctuate? I’m overwhelmed. Please respond! Thank you in advance!!!

[Enrique Huerta]

Hi @David Flores ,

You'll get a variety of opinions regarding whether it is a "good time to buy." So, you plan on buying a 4-plex to live in and rent out the other units? Or simply as an investment property where you will NOT live there?

Good time to buy depends on your plan. How long will you own the property? What kind of financing are you using? 

Hemet is an area with a lower median HHI, but it has seen growth over the last few decades. Pricing is also lower overall due to location, lack of higher paying jobs, etc. I personally was interested in a 200-unit deal that traded there a few years ago. It's a working-class area and I would encourage you to visit the city, drive around to see the neighborhoods and do a deep dive into the demographics so you get an idea of how the city is. A lot of people wouldn't invest there, I personally would if it was the right deal. From the last deal I saw, many people worked locally at factories, retail stores, etc. and some higher paid tenants were commuting to the Temecula/Murrieta area and even down to San Diego.

The market is anticipated to decline somewhat over the next 2-3 years, but no one knows for sure. Timing depends on your business plan, financing, and long-term goals.

Elaborate on those and hopefully I can provide more color to the answer.