Fountain Valley, CA · Member since 2017 · 19 posts · 8 votes
Hi all,
I'm looking to invest in this area because it's close enough to where I live (Orange County). My mortgage broker is telling me this is an up and coming area that is low risk, high reward potential. After visiting the town and 7 properties, I'm convinced it is a quiet town and a great place to raise a family with affordable rents. The houses are in the low 200's, so they're still relatively affordable. I wanted to get any opinions or insight from members here and if they have any experience dealing with this area, thank you.
Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
8y
Just helped my client buy a few flips in Victorville and Hesperia. Competition is definitely lower as well as prices, but distance is usually a factor for most people.
Just helped my client buy a few flips in Victorville and Hesperia. Competition is definitely lower as well as prices, but distance is usually a factor for most people.
What are you thoughts on the area of Hesperia? I toured 7 houses and met some owners and some tenants of all types. Some were Los Angeles transplants looking for cheap(er) rent and some were just blue collar Craigslist randoms. Overall consensus in my mind is that this is an affordable area to raise a family. It's a commuter city so it seems like most are there as long as their work is along the I-15. Definitely price is the major factor, but location relative to OC is important for me as well. 1.5 hr drive ain't bad for an investment property if anything goes wrong. Thoughts?
Upland, CA · Member since 2015 · 56 posts · 16 votes
8y
I personally would not invest somewhere, that I would not like to live in, if it came to worst-case scenario. I feel that Redlands is an up and growing city with lots of potentials and still has room for investors.
I'm in the process of picking up a SFH with half an acre lot. I'm going to house hack it and try to build an ADU in the property and hopefully rent it out and I also have another duplex in Redlands
I personally would not invest somewhere, that I would not like to live in, if it came to worst-case scenario. I feel that Redlands is an up and growing city with lots of potentials and still has room for investors.
I'm in the process of picking up a SFH with half an acre lot. I'm going to house hack it and try to build an ADU in the property and hopefully rent it out and I also have another duplex in Redlands
What are the rents like in those areas? The properties still look fairly pricey compared to Hesperia.
Investor · Highland, CA · Member since 2016 · 19 posts · 8 votes
8y
Yes, Redlands and Riverside are both pricier than Hesperia. I've looked in both areas fairly extensively and hard to touch a property for the 200's, much less low 200's. I've also considered the high desert but have never looked at properties there.
Good Luck!
Jim
Realtor · Pomona, CA · Member since 2017 · 15 posts · 8 votes
8y
Hey @Darryl Lin, I am also looking in the high desert area, preferably for a small multifamily. I see Victorville, Hesperia, and Apple Valley as great investment locations with affordable prices and competitive rents. There is a lot of construction going on in the high desert and with rents/home prices down here going through the roof the high desert will command higher prices/rents in the next 5-10 years. Right now I am searching the MLS daily and have a subcontractor friend who lets me know if he hears of anything hitting the market soon as I am ready to pull the trigger on my first deal this year. I pm'ed you.
Investor · Riverside, CA · Member since 2017 · 46 posts · 12 votes
8y
I agree with @Rafael Larios. I personally would not purchase more than an hour drive from me unless its a stellar deal. That being said, from what I have seen, the high desert is a great place to invest with little money. The market out there is an up and coming one for sure, but there are a few pockets you would probably want to stay away from
Upland, CA · Member since 2015 · 56 posts · 16 votes
8y
if anyone would like to check out the property I'm working on now let me know it's a 1/2 acre SFR in Redlands, that I would like to either split the lot or at least build an ADU.
Investor · Kansas City, MO · Member since 2018 · 117 posts · 46 votes
8y
@seththompson have you been able to get positive cash flows in your area. I'm new to REI and on my initial assessment, the further east you go the easier.
Investor · Menifee, CA · Member since 2015 · 534 posts · 216 votes
8y
Seth Thompson I am active in riverside county and city of San Bernardino. Everyone please stay out of riverside county and the city of San Bernardino. DEALS ARE TOUGH TO COME BY LATELY. I’m just kidding about everyone stay out, but i can dream of being the only investor in my area! Some of those smaller cities could be a decent play for the future. I’m not familiar with the high desert/desert cities market but if your just starting out I would try and stay close to home for your first deal.
Rental Property Investor · Orange, CA · Member since 2017 · 18 posts · 17 votes
8y
Darryl Lin , I am an investor in the Hesperia market for about 3 years and got few SFR that I am renting, the high deserts is a growing area , although CoCr is around 5-6% but you are betting on future appreciation , LA and OC Market is over saturated with renters , many of them can’t afford rent anymore , so many are moving towards the east , 15 years from now , homes should value in the $500k ( my opinion ) think of it this way , a river with over flown water branching out of its track. I got help from others along the way , would love to pass it on , PM me and Let me know how can I help.
For all experts and fellow agents out there , I am looking for a 4plex multi family off the market preferably , and thinking of Hesperia , apple or VV area. Any ideas ?
Blessings.
Hesperia, CA · Member since 2017 · 18 posts · 4 votes
8y
A little late to respond but just say the post and thought I would throw out my thoughts if your still interested. I live and grew up in Hesperia/ Oak Hills. I currently have 1 SFR rental, in Hesperia that does well but only because I bought it 10 years ago, half price of current value To me the prices seem very high from what I have seen traditionally over the years, and I am personally worried that they are currently overpriced and questioned whether I should get out on top. But, as others said the other local IE markets are about double the High Desert values so that could help maintain the high values. Rents are starting to rise but, you will not get anywhere close to the 1% rule up here, on normal sales, from what I see. I would like to invest more but just not sure which way to go.
Rental Property Investor · Lake Arrowhead, CA · Member since 2016 · 43 posts · 23 votes
8y
@Ryan Wilson I commend you on buying in the high desert, something I have now yet ventured into and Barstow is another area that could be talked about for a while. After reading you post and profile I am gathering that you are flipping as well as long term holding. I believe I now see how to handle the high desert, buy, rehab, and hold long term this will maximize cash flow and equity over the shortest amount of time. I have always thought of the 1% rule of an initial purchase goal but to up the percentage through time. I think you have found the key to the high desert, now the next step would be the property management. It definitely is not the quickest route but over time you could be looking at a lot of paid off well cash flowing properties. Please let us know us know how thing are going. Thank you, Brian Grant.
Rental Property Investor · Buhl Idaho · Member since 2018 · 20 posts · 12 votes
8y
Lived in the High Desert for the last 30 years,
Biggest problem we have in the high desert is the local economy...(or lack of)
Historically, Good Paying Jobs have been few and far between in this area.
Before Rents or Real Estate prices can go up much more here, we need to bring more good paying jobs back to the area. After George Air Force base closed, so did a lot of Businesses, Growth in the area stopped almost overnight.
finally started to pick up again in about 2004 then all of the sudden home prices in the area rose 300-400% between 04 and 08... Still no economy to support the increase in home prices, so needless to say we got hit pretty hard in the Crash...
Other drawback to the area since there is a shortage of Economy up here, would be the Commute time up and down the Cajon Pass, 4000' elevation climb in just a few miles, " the Pass" has been know to ruin a brand new car before you are even done paying it off, so figure in a new car payment if you are thinking about commuting to work from here...
Thanks fot the info, I dont know of many people who invest in the high desert because if the economy. Honestly I have been timid as well, but I am wondering how it has worked for you? About a year ago I heard rumor of a casino that was to be built in the Victorville or Barstow area. Is that still a plan?
Rental Property Investor · Buhl Idaho · Member since 2018 · 20 posts · 12 votes
8y
Rumors of a casino have been going around for about 20 years...
Don't want to step on anyone's dreams but, I will believe it when I see it...
Several Groups have had public forums to discuss the possibility of building a Casino, at everyone of these meetings Everyone seemed to be in agreement that it would be a good idea to boost the local economy and provide much needed jobs to the area, but then the county steps in and the whole project gets put on the back burner and we wait until the next round...
Hesperia came close about 3 years ago, had a spot picked out right off the freeway, Would have been a great location, Really thought it was gonna happen that time... But to no avail... Same thing somebody showed up with a great big roll of RED TAPE and messed up the whole project !!!
Barstow has been trying for years to get one up and running they came close several times too...
But for whatever reason just Could Not Close the Deal !!!!
Hey BiggerPockets community, Do we have any Real Closers here that can get a Casino Deal Done so we can finally have some jobs and a real economy around here ???? PLEASE....
I have been learning about the market in last couple of months .I am starting a SFR project soon. But I asked couple of people and they were not positive about Flip projects.
I am curious to hear if any Flippers could join the converstaion. Did you have good experience recently on flip project in Victorville/Apple Valley areas? How long did it take and how much profit one should expect?
I have been learning about the market in last couple of months .I am starting a SFR project soon. But I asked couple of people and they were not positive about Flip projects.
I am curious to hear if any Flippers could join the converstaion. Did you have good experience recently on flip project in Victorville/Apple Valley areas? How long did it take and how much profit one should expect?