I purchased my first home about a year and a half ago in Vallejo, CA where I now live. I am thinking of buying a second home as an income property nearby. My goal would be to buy and hold and I am looking for some cash flow. This doesn't seem to be the best area for cash flow, but I would like my first income property close by. I would love to hear if any of you have rental properties in this area. What are the vacancy rates and how has it been finding tenants? Looking on craigslist, many apartments and homes seem to be sitting vacant. Any thoughts or advise?
Invest out of state. The notion of buying close to home was so ingrained in me that I didn't realize all the successes that others were having for the past few years unfortunately.
California market is very inflated. Most investors take their money out of state to see better returns. Good luck!
@Ria Blackburn Vallejo is beautiful. I have a small portfolio of rentals there. I also farm there for my buy/sell biz. I have no complaints. Welcome to the fun.
I don't know a lot about Vallejo specifically other than it is economically challenged in certain areas and a lot of crime. I have friends that are police/fire/ems there and I hear a lot of stories. It doesn't mean that you can't make money there. I have had California investments, but have since moved my efforts out of state.
I would suggest finding several property managers in the Vallejo area. They should be able to tell you where to find the properties, and the details on the turn over etc.
Best of luck to you!
I invest in California real estate and have done just fine. I don't have experience with Vallejo, but I do know that there are lots of Vallejo houses in the Solano County tax deed auction coming up (
. If you can grab a fixer at a low price in an auction, that might work out for you. You can check on city-data.com and Trulia for neighborhood-specific info about which neighborhoods have more and less crime.
Let us know how it goes!
Hm, looks like that link didn't come through whole. Just go to ************** and click on tax deed sales, then Solano County.
Hi Ria. Welcome to BP!
I had a 3/2 condo rental off of Tuolumne in Vallejo awhile back and received a decent rent for it and decent ROI. I haven't invested in Vallejo for quite some time and it is one of the few cities in CA that claimed bankruptcy during the downturn. There are pockets of the city that you want to stay away from but there are some decent areas also. Ultimately, if you are looking to buy and hold, no matter where you invest, make sure you or your PM screen the incoming tenant appropriately. A properly screened tenant will lead to a good tenant with on time rents, lower turnover, and someone that will hopefully take care of the place. Look up Krystle Property Management if you are looking for a good PM in that area. They should also be able to give you what market rent is for homes in a specific area in Vallejo.
There are so many people who work in the SF Bay Area who are willing to commute now, I think you should try targeting them.
I have friends with a rental in Fairfield and one thing they did to get their place rented quickly, was advertise that they'd take large breed dogs on approval, that were not breeds on any restricted lists. This worked great for them. It's so hard to find rentals that will take dogs at all, but especially large breed dogs.
Then, be sure and meet the dog and get a good dog reference from their last landlord.
If your rent makes it worth it to commute to the Bay Area, people will rent from you. I'd target the SF Bay Area Craigslist ads, and include info on commute time to SF, and how close the rental is to the Amtrak station, etc., for commuters.
My friends live in Fairfield and work in Martinez. Vallejo is much closer to the Bay Area than that. Heck, people are commuting from as far away as Tracy and Los Banos. Of course, they're usually buying homes, but still, rents are so high now that people will commute if you market it to them. You could even find out how far it is to the closest point the free Google or Yahoo, etc., buses will pick up workers and include that in your ads.
BTW, I used to manage a 26 unit building in Santa Clara - retired November 2013, so I'm pretty familiar with that market.
Hi Ria, I have owned a rental in Vallejo for about 10 years. Honestly it's a tough market to make much cash flow in due to the rents that you can get versus the cost of purchasing property. I do recommend that your first rental be close to home, so I totally understand your interest in buying in Vallejo. It can be done, but to make much cash flow you will need to find an awesome deal. Please feel free to connect with me and I can offer more detailed advise and share my experiences. Good luck!
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