Valencia, CA · Member since 2016 · 26 posts · 18 votes
I live in Los Angeles and completely priced of this market. I'm having a hard time finding a good out of state location. My friend lives in AZ and suggested Downtown Phoenix. She said there are several districts there that are being revamped. Any thoughts on that area?
@Zach Quick I am from California as well. While I do agree with you on investing where you live. Unless you have a good amount of capital to start with, it is really hard to start here. On top of that since the prices are so high right now, if there is a downturn you will have to cover the negative cash flow when rent starts to trend down (which is what is happening in san francisco right now) as well as lose equity. Yes you will get it all back in 10-15 years but in terms of return, would it not be better to invest out of state where you cash flow and and bring that return back to california when the market has bottomed out. Just a thought, as this is the route I am planning taking. Building a cashflow portfolio out of state, and bringing it back to home once things cool down a little more.
Also I think in Studio City we have to understand most renters are in multis as that is where the demand for living warranted to build multis, so many are renters. As far as SFRs, those are mostly owners and if one wanted to rent a SFH in SC there is low supply and high rents. To fully unpack what is going on there...it is a very tight for both multis and homes and it would be hard to apply these ratios to other areas exactly.
Ciprian L. -you mention buying quality over quantity. I feel like I can't buy quality here in S CA. To buy a quality CONDO, I would have to be in the 500k+ range. Plus LA is in a bubble right now. Wrong time to invest in CA.
@Karen DiNapoli It's all about the numbers. Do you want to buy something and sell it in a few years or invest for long term.
LA in not the only place in a bubble, out of state might be too, most of Californians are buying overpriced properties out of state and the local people are taking advantage of them.
Welcome here to B/P. I would just say there are lots of investors that invest in U.S. from other countries like Canada. They look for good property managers rehabers ect so a team is in place and everything can be done remotely for these type of investors. Just got to build a team you can trust the key to any success in real estate. With the internet these days everything about how we do business in real estate has changed I should know I am an old dinosaur here.
I also live in Southern CA and have just started investing out of state. I looked at markets in the Midwest including Chicago , Memphis, Philadelphia and utilized Turnkey-reviews.com to assist me in finding a team to assist me in my investment journey. I ended up deciding on Chicago as my preference is focused in multifamily units and the cash flow numbers are great. Utilizing turnkey-reviews.com has been a great resource and really made me feel comfortable with the team I decided to partner with. If you want to know more you can PM me.
If you are interested in out of state investing, try looking into Waterbury CT, lots of nice homes for great prices. Price range that you mention you can find move in ready townhomes in sought after locations. There are homes for sale in that price range but those will require some work. If you were investing 45K and obtaining a mortgage for the balance of say a 60-90k range you could obtain a nice single family that may need major/minor cosmetic work, like painting, removing old carpet, yard sprucing. Major work would mean perhaps there is a working furnace but older and you would want to replace. I love working short sales and probate properties for clients. You can purchase homes that may be a bit dated but well-maintained and in no time can get someone in to rent the property. Many are relocating from more expensive areas such as Stamford, Bridgeport, Danbury CT, and New York city because they know they can get a lot more for their funds. Larger homes with decent size yard space but at the same time Waterbury is positioned where you can easily access other towns. Hope this is of some assistance :)
Does anyone want to share why they think LA RE is in a bubble? Or who, what, where they got that info. The nation is likely heading into a recession in the next 12 months just as historical cycles go but that is another subject. I could understand sidelining for a year or longer and see what shakes out of the recessionary times coming.
Does anyone want to share why they think LA RE is in a bubble? Or who, what, where they got that info. The nation is likely heading into a recession in the next 12 months just as historical cycles go but that is another subject. I could understand sidelining for a year or longer and see what shakes out of the recessionary times coming.
I also live in Southern CA and have just started investing out of state. I looked at markets in the Midwest including Chicago , Memphis, Philadelphia and utilized Turnkey-reviews.com to assist me in finding a team to assist me in my investment journey. I ended up deciding on Chicago as my preference is focused in multifamily units and the cash flow numbers are great. Utilizing turnkey-reviews.com has been a great resource and really made me feel comfortable with the team I decided to partner with. If you want to know more you can PM me.
How long have you been investing out of state and in Chicago?
I think we're in similar stages of getting started. I've done lots of research before choosing to settle on an area for investing. Personally, I chose the Raleigh, NC area however, your goals may be a bit different than mine :)
Along the way, I've found several great resources to help me make my decision. I think the best and most objective source to date is the PWC Emerging Real Estate Trends report.
There are reasons I chose not to go with Austin, Atlanta, and other hot markets of the sort after looking deeper into the environmental factors. Similar to others, I'm also happy & excited to share my experiences. It's been a very interesting learning process for me.
Hey Karen!! There are plenty of opportunities in NE Ohio that may fit your investment goals. Most important thing is to find someone you can trust in terms of their education and experience as well as their track record. Just about any city in the US can be great for investment depending on your strategy. It looks like you are looking to buy and hold with good cash flow. Please review my profile and message me if you would like to ask any questions or to get a feel for NE Ohio.
@Lane Kawaoka Memphis has a great cash flow market. Our company currently has the most inventory in the Mid-South and manages over 1500 properties in Memphis and surrounding areas. If you give me your parameters I can send you over some properties.
I would encourage you if you have time to take a look at the homes in Waterbury, I stumbled upon this area some years back. There are a lot of sought after areas in this town and the demand for rentals is there for investors that would like to buy and hold. We currently have a home that we are preparing for rent, once completed it will rent very quickly and for the house you are looking at a minimum of $1,450.00 due to location. We have doctors that come to this town to do the Residency and look seek areas that have a country feel though in the city and are easily accessible to the hospital. Outside of the medical profession, there are people who are renting apartments currently in New York paying top dollar where they are able to come rent an entire house with a yard, etc. for the same or even less than what they are paying for a rental property. Torrington is another town that purchase prices are very low but hasn't caught on yet to many. Danbury CT at one time used to be a very good place to buy real estate for a reasonable amount of money but now properties have appreciated and rental amounts have skyrocketed. So many are relocating to Waterbury which in time feel will become another Danbury, Stamford, Norwalk and Bridgeport. There is a high supply of properties for sale now, which is good fo investors but think there will be a time in future where it will not be as easily accessible. Its worth taking a look :). Have found the landlords that provide a quality rental have tenants that remain very long term.
@Karen DiNapoli I'm also in an over priced market which is why I invest in the Mid-West. If your interested in learning about my market PM and we can chat. Take care and Good Luck!
hi I am a real estate agent based in Torrington and I work the Waterbury market and all towns in between. Please feel free to message me if you have any questions about area properties.
I have been investing in and out of different markets based on how the local market was preforming. In PHX/Orlando 2004 and out in 2006 again in 2010 and out in 2012.
Theses days I'm very active in OKC, Tampa, Dallas, Houston, and Nashville.
Only go after good areas, C+ to A+ schools.
$45k + a mortgage can buy you $150k+ house in these markets and rent will not only cover the debt + overhead but you will leave you a small 200-300 in cashflow on average (after ALL expenses: vacancy, repairs, mortgage, property taxes, insurance , property manag., etc. )
While PHX is truly a great area my personal take is that there are other markets, these days, that will provide you w/ higher/better returns. PHX ain't bad but can you do better? ans would you invest in PHX if you did not have that friend telling you.
@Dani Beit-Or Thanks for you reply! My investment goal is to buy and hold only in good neighborhoods. Not looking to chase after rents my whole life! The other areas that I had been interested in is Grand Rapids, MI and Milwaukee, WI. My cousin lives in Milwaukee so I like that I have someone I can trust to ask about neighborhoods. However, I don't like the idea that it snows there and I could potentially have months of vacancy because of weather! I guess I have to be very strategic of when to buy and rent out if I decide to go out that way. I also looked into Texas. I was looking in Rockwall...not Dallas or Houston. Florida makes me nervous with all those hurricanes!
Honestly, Phoenix is pretty low or not even on my list anymore!
If you are investing out of state, how do you know what are the good neighborhoods vs bad ones. I look at greatschools to see their ratings. That's how I found a great school for my daughter so I know it's a pretty good indicator. What do you use?
@Karen DiNapoli I use tools such as Google earth, city data.com, rent.com, craigslist, and talk to locals in the area or property managers they can provide you with feedback. :)
@Dani Beit-Or Thanks for you reply! My investment goal is to buy and hold only in good neighborhoods. Not looking to chase after rents my whole life! The other areas that I had been interested in is Grand Rapids, MI and Milwaukee, WI. My cousin lives in Milwaukee so I like that I have someone I can trust to ask about neighborhoods. However, I don't like the idea that it snows there and I could potentially have months of vacancy because of weather! I guess I have to be very strategic of when to buy and rent out if I decide to go out that way. I also looked into Texas. I was looking in Rockwall...not Dallas or Houston. Florida makes me nervous with all those hurricanes!
Honestly, Phoenix is pretty low or not even on my list anymore!
If you are investing out of state, how do you know what are the good neighborhoods vs bad ones. I look at greatschools to see their ratings. That's how I found a great school for my daughter so I know it's a pretty good indicator. What do you use?
Perhaps also check out esri to get another feel for the hood. They have I think 70 levels of hoods deliniated by zip and the percentages of the consumer groups/tenants in each of those zips. Companies like Starbucks will use info like this.
Here what it reports for the first 39% of the Stevenson Ranch oocupants. I did not check the other 61% but it is also on there.
Young, well-educated, ambitious, and hard-working, we're climbing the ladder in STEM occupations and will change jobs often to advance. You can find us in rented condos, townhouses, or apartments in lower density neighborhoods of large metros. Our neighborhoods are diverse; more than 20 percent of the population is Asian. Technology is major for us; we're early adopters of new devices and happy to discuss and advise peers about technology. Trendy clothes and name brands are important purchases; we also shop on Amazon for convenience. Favorite restaurants include The Cheesecake Factory, Chick-fil-A, and Starbucks for coffee. We travel for business; in our spare time, we gamble, visit museums, go to the beach, and watch movies and TV with video on demand via a high-speed connection.
@Matt R. - I used that website to look up zip codes that I am very familiar with (places I've lived and currently live) and I can not believe how accurate the description is! I hope it is as accurate for the locations I want to live in. Thank you for this website! I will definitely use this during my search!