Investor · Port Hueneme, CA · Member since 2017 · 73 posts · 34 votes
Hi there! So I recently got word that my wife and our soon-to-be-newborn will be heading to Oxnard, CA this coming Summer, and will be living there for the next few years. I own a few properties now (3 doors currently) and was torn between 2 strategies. I was considering just renting in California and buying more rentals in Indianapolis, or using the housing money I'll get every month to buy a 3 or 4 plex and living in one of the units, then renting out ours when we move away down the road (or selling if that makes more sense).
Any tips or investors with experience in the areas west of LA? Also any experience with Camarillo, Ventura or any of the surrounding area would be appreciated as I don't necessarily need to live in Oxnard, just within commuting distance.
Several people from BP who live out of state or just moved to Southern Cali have reached out to my wife (she's a realtor) to help search for a small multifamily. In all cases, they were looking to spend a lot less than what's currently on the market.
We live in Oxnard, so feel free to reach out or send me a PM if you have any specific questions about the area. I could also give you my wife's info if you would like her to send you a list of some properties on the market, or to talk about the market in general.
Los Angeles, CA · Member since 2018 · 326 posts · 279 votes
7y
James, congratulations on the move to Oxnard! Oxnard is a great place to be as it's close to Ventura, Thousand Oaks, Malibu, beautiful beaches and some great state parks.
There are definitely a few differences between Oxnard and Camarillo from a housing expense perspective as Oxnard is about 15-20% less than Camarillo. Camarillo is more white collar and the income per capita and household is much higher versus Oxnard.
There are quite a few options from an investment perspective for both cities, however, it depends on what you want to achieve.
Similar to you when I moved to Los Angeles a few years ago we had to decide whether to continue to focus on OOS cash flowing properties or buy something here in Los Angeles that would appreciate and have our renters pay a portion of our rent.
We decided to buy our multi-unit here in Los Angeles and we are extremely happy we did as the home as significantly appreciated and we've completed a refinance and a HELOC since our purchase and have purchased more OOS cash flowing properties with the money we've gained.
My recommendation based on my experience is to buy a multi-unit in the Oxnard area and have your tenants pay a portion of your rent and then let appreciation do it's job. In a few years you'll be able to refinance and do more OOS investing.
Several people from BP who live out of state or just moved to Southern Cali have reached out to my wife (she's a realtor) to help search for a small multifamily. In all cases, they were looking to spend a lot less than what's currently on the market.
We live in Oxnard, so feel free to reach out or send me a PM if you have any specific questions about the area. I could also give you my wife's info if you would like her to send you a list of some properties on the market, or to talk about the market in general.
Flipper · Cupertino, CA · Member since 2015 · 265 posts · 27 votes
7y
CA is a lot more expensive than other places ut the appreciation is phenomenal.
I moved from Westwood, CA to Silicon Valley in '99. I was able to sneak into a SFR here via a I/O loan. The property has appreciated 4x over than time w/ ~300K in improvements.
I don't know if Oxnard has more affordable opportunities.
Camarillo, CA · Member since 2019 · 30 posts · 19 votes
7y
Hey welcome to the area! Ive been looking in Oxnard for a 3-4 plex as well without much luck everything seems to be to far out of my budget for a first time buyer. I currently live in Camarillo and can tell you its significantly more expensive out here, though our current home has appreciated almost 150k in the 5 or so years we've been here. Im not sure how much help id be but feel free to message me if you need someone to bounce ideas off of.
Investor · Port Hueneme, CA · Member since 2017 · 73 posts · 34 votes
7y
Thanks for the replies y'all! I'm leaning towards trying to get into a 3-4 unit on an FHA loan in hopes of bringing the down payment way down and having the rental income cover the majority of that ungodly mortgage the place is sure to have. Already pre-approved with a lender and starting to glance at home buying sites here and there (Does Zillow not have a multi-unit filter?). We're still a few months out but I just can't resist the possibility of house-hacking a multi-unit that has the California appreciation potential, both in value and in rents.
If finding a multi-unit proves to be impossible though, we may just end up renting and buying more stuff in Indy. Time will tell. Thanks again for all the input :)
Unfortunately zillow does not have a filter for 3-4 units, however, I'm more than happy to set you up in the MLS so you get the list of multi-units in the Oxnard, Camarillo and surrounding markets.
I recommend you get the MLS listings and then cross reference with zillow and redfin values to make sure that you're getting the best deal that will allow appreciation.
Rental Property Investor · Thousand Oaks, CA · Member since 2013 · 69 posts · 16 votes
7y
@James R. Copeland Check out loopnet as well, sometimes there are some gems that get listed commercially rather than on the residential MLS.
Pretty much anywhere in Ventura County is going to be commuting distance to Oxnard, it's relatively centrally located in the area. I've lived in Santa Barbara (about 40 minutes north), Camarillo, Simi Valley and Thousand Oaks (currently), all are easily commutable.
Good luck, it's a beautiful area here but it is damn expensive. We're seeing the market soften a bit the last few months, so you may see prices start to come down some more as we head further into 2019.
Feel free to hit me up anytime, I'm happy to help.
Real Estate Broker · Los Angeles, CA · Member since 2017 · 655 posts · 293 votes
7y
Keep searching. Buy with FHA if you have to is my best guest. But look at rents vs true cost of buying a 3 or 4 plex - over the next few years.
Over time, that multi family will outperform the money differential of renting. but since you are still investing if you rent here, - just factor that in also
Los Angeles · Member since 2018 · 5 posts · 2 votes
7y
Rent is crazy these days in California so if you're able to qualify for a loan and have the down payment purchasing 2-4 units is the way to go. You'll enjoy the difference in appreciation here vs Indy and the same applies for rent growth. Oxnard has some sketchy pockets so it's important to connect with someone who has local knowledge. As stated above, housing is in high demand so you will be in a good position to find tenants.
Hi there! So I recently got word that my wife and our soon-to-be-newborn will be heading to Oxnard, CA this coming Summer, and will be living there for the next few years. I own a few properties now (3 doors currently) and was torn between 2 strategies. I was considering just renting in California and buying more rentals in Indianapolis, or using the housing money I'll get every month to buy a 3 or 4 plex and living in one of the units, then renting out ours when we move away down the road (or selling if that makes more sense).
Any tips or investors with experience in the areas west of LA? Also any experience with Camarillo, Ventura or any of the surrounding area would be appreciated as I don't necessarily need to live in Oxnard, just within commuting distance.
Hey James congrats on moving from Clark county WA down to Ventura county CA.
The one thing you'll find is that the prices are almost double or more as expensive as clark county for comparable 3-4 unit properties. If you'd like pricing that is similar to clark you'd have to go out to san bernardino county where a fourplex is still 550-700k.
One downside with FHA and 3-4 units and the subject is severely talked about over and over here on BP is the self sufficiency rule. You'll need roughly .90% of the monthly gross rents to be higher than your entire monthly PITI payment (prin/interest/taxes/insurance monthly) which is near impossible to do in Ventura county even if you buy extremely distressed but then FHA wont finance you (probably) due to min health and safety requirements with FHA (unless if you do a 203k FHA rehab loan but thats another discussion).
The only way to combat the FHA SS rule is to put more money down which negates the benefit of 3.5% down FHA loan, find ways to decrease your monthly payment like rate buy downs, use of FHA 5/1 ARM instead of 30 year fixed, get lower insurance quotes, or to increase the rental income (either or). There are some other strategies to work around this SS rule, it can be done, but is tough.
Let me know if you have any questions on strategy. I've work with a lot of house hackers, invest myself, have house hacked a couple fourplexes and some townhomes in orange county and up in Seattle.
Recently joined Bigger Pockets ! Live in Culver City CA
I am looking to buy multiunit property using FHA as a first time buyer. Looking in Hawthorne, Torrance or Long Beach. Any suggestion please?
HI Uday,
Theres the regular financing part of the equation which is qualifying part of it. This part is easy, it has to do with having sufficient credit scores/history, sufficient funds for down payment or reserves, and having enough income to qualify.
The tougher part in the coastal market is finding a deal that you will not only qualify for but also meets FHA's property requirements (Self Sufficiency or SS Rule), thats the hard part.
Also when and if you are able to achieve both of the above, how will you structure your FHA loan so that you can capitalize on the FHA program and reduce the cost of thousands of dollars of up front mortgage insurance premium (UFMIP) that FHA finances into your loan.
Having a strategy to bob and weave in and out of the above to fire off your uppercut hook cross or 4-3-2 combo will be what you're probably looking for.
Best of Luck, let me know if you have any questions.
Good luck with your move and property search! I recently wrote a blog on how to use refinances as a stream of income. Works great for multi-unit properties and would definitely help with the high costs of that area.
Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes
7y
All of So Cal has the same issue. Multifamily is priced beyond multipliers that make any sense. When the cost per sq foot is 25%+ higher than condos or SFR you really have to pause in your assumptions that just because its a 4 unit its a good deal. What is the CPU on a 4 unit - Hitting over $400k, that means its tough to make it ever cash flow.
The main reason is most areas it is tough to find 4 units [Long Beach and LA but those areas can be tough and not best for owner occupied, not sure how many are in Camarillo but when I lived in Thousand Oaks I cant remember ever seeing a 4 unit]
Here is what might be a good alternative, buy fixer condo, fix it up and rent out,
Buy a SFR and do an ADU conversion or add on
Buy in an area you would not live in but ok to rent out.