Success in Southern California?

2 Replies

Hi all,

Sort of a general temperature taking with this post.

I'm actively looking for my first investment. However, it looks like I'll be moving to Southern California within the next year which means I'll either need to invest in SoCal or be an out-of-state investor on my first deal (currently living in Vegas but working in LA.)

I've heard a lot of negatives about investing in Cali on the podcast and wanted to hear from some members about it. 

So, for all you SoCal investors out there, how are things going?

Thanks in advance.

@Will M.  Welcome to BP! Many times the naysayers are turn key brokers trying to get you to buy from them. California is a HUGE state, with many different markets, and economies. There are some places where you can buy and get cash flow, and others where you can't. There are properties in southern California coastal areas or vacation spots where vacation rentals make sense, and will cash flow, or rentals for college students, etc. 

The point is, you have to dig in and find the deals that work, and the niche you are comfortable with There's not a lot of low hanging fruit. At the same time, there's a reason why there's such a demand for housing in California, which drives up pricing. 

Hey Will! Well an upcoming welcome to LA if you are moving out here :) I'm over in Venice. I would argue with Karen that the reason the naysayers pop up about buying in SoCal (or other parts of CA) is not because anyone is trying to sell anyone on anything, the reality is cash flow is hard to come buy here, if not impossible for most. If you are wanting to buy rental properties and are looking for cash flow, SoCal will be very tough. The only way to make that work here is if you are able to get deep on the inside and find top secret deals somewhere (of which I've only known to happen on the commercial side here). However, Karen is not off when she says there are deals to be had here--it just depends on what kinds of deals you are looking for. Flipping can work here, wholesaling may be a thing here, certainly buying for appreciation is an option...and then for the cash flow, like I said, if you can find a couple people who work the market here and make it work, connect with them and see how they do it. 

I've never been that motivated to work that hard for cash flow, so I've always bought out-of-state. So can't speak to how buying in-state has gone, but can speak to the out-of-state side. It's all about what your goals are and what you are looking for, and how much work/effort you want to put into things.

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