Lender · Temecula, CA · Member since 2012 · 60 posts · 23 votes
12y
Hey @Mohit Madaan, I actually grew up in Stockton and although I live in Southern California now, I do quite a bit of investing there. I've done about 20 flips there since April 2012. I agree with Kyle, the city does have a pretty bad name with out of towners, but that has always made the competition a lot lower for us that know the area. With that being said, there are A LOT of folks who have lost money in Stockton because they buy in the right area but on the wrong block. Literally one block could adjust an ARV or a rent rate pretty drastically if it is a gang neighborhood or a rental block.
When I flip, I prefer to stay north of Harding Way and in Central Stockton, I try to stay West of El Dorado St. I have done most of my flips in Central and North Stockton.
There have been a lot of hedge funds and international funds buying up property in Stockton lately and their purchase criteria is simply a very passive cap rate. These funds are bidding whatever it takes to get their 5% cap and in many instances, it has meant that they will bid turn-key purchase prices for properties that are HEAVILY distressed. Because of some of these numbers, I haven't bought much in the city since June of last year.
I'd be glad to answer any questions about location and contractors in the city and help however I can. Feel free to colleague request me or email me directly.
Was in Stockton on monday. Met with realtor and briefly looked at about 7 houses - Many in bad areas. Thats about the extent of my experience in that area. Also considering Manteca, Lathrop.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
14y
Eric Nickelson I currently have 2 SFR in Stockton and am about to close on #3. Personally, I think Stockton gets a bad rap in the media. It's not as bad as the news would like you to believe. I personally haven't had any problems with any of my properties/tenants.
As far as areas to avoid - I won't completely rule out any area if I can make money there. However, with that being said, there are definitely some areas that are "rougher" than others (primarily the south part of the city - approx the area south of Harding Way).
I have not found any local REI clubs. I wish there was one. In fact, I'm surprised there isn't one with all the rentals/investment properties in the city. Every property I bid on gets numerous offers, so I know people are buying there.
Real Estate Investor · Santa Cruz, CA · Member since 2009 · 267 posts · 73 votes
14y
Stockton definitely has the numbers for great cashflow. I'm not an expert in that area of CA, but from what I can deduce, prices have generally bottomed out. One investor I know who strictly invests in the South Bay Area recently went out of his comfort zone to acquire a 30 unit complex for 27k per unit (killer cashflow!). Anyway, I think its not a bad market to start out in. Just keep in mind that the city recently filed bankruptcy.
Investor · Stockton, CA · Member since 2014 · 167 posts · 49 votes
12y
I got a buddy who was born and raised in Stockton and have lived there for 30 plus years. I also run business out of that area. We are forming a LLC and thinking of starting to pick up properties all over the city.
He lives on Country club blvd but that's not in our budget to pick up houses for investment or flips.
Will keep the thread posted. I am in Stockton 2-3 times a year and would like to catch up with fellow BPs on ideas and network with people in the area.
Lender · Temecula, CA · Member since 2012 · 60 posts · 23 votes
12y
Hey @Mohit Madaan, I actually grew up in Stockton and although I live in Southern California now, I do quite a bit of investing there. I've done about 20 flips there since April 2012. I agree with Kyle, the city does have a pretty bad name with out of towners, but that has always made the competition a lot lower for us that know the area. With that being said, there are A LOT of folks who have lost money in Stockton because they buy in the right area but on the wrong block. Literally one block could adjust an ARV or a rent rate pretty drastically if it is a gang neighborhood or a rental block.
When I flip, I prefer to stay north of Harding Way and in Central Stockton, I try to stay West of El Dorado St. I have done most of my flips in Central and North Stockton.
There have been a lot of hedge funds and international funds buying up property in Stockton lately and their purchase criteria is simply a very passive cap rate. These funds are bidding whatever it takes to get their 5% cap and in many instances, it has meant that they will bid turn-key purchase prices for properties that are HEAVILY distressed. Because of some of these numbers, I haven't bought much in the city since June of last year.
I'd be glad to answer any questions about location and contractors in the city and help however I can. Feel free to colleague request me or email me directly.
Real Estate Investor · Eddington, ME · Member since 2015 · 14 posts · 7 votes
10y
@Jake Leicht, how do you find your deals in Stockton? I'm considering buying a house for my sister and her two boys. Because they're on a fixed income a duplex would be ideal so it could generate some of the funds to cover the mortgage. Do you have an investor real estate agent you work with?
Lender · Temecula, CA · Member since 2012 · 60 posts · 23 votes
10y
Hi @L'aura Bradford, I find deals in Stockton a number of ways. Often times, one of the agents that I work with either sends me over a deal before it hits market or the moment it hits the market. Other times, I get leads from some of the title companies. It just depends on how involved you are with the local professionals. I do have a couple of referrals that I can send your way to help you find the ideal property for your family. Please shoot me an email and I will help out as best as I can.
Investor · Stockton, CA · Member since 2016 · 3 posts · 2 votes
10y
I'm from stockton, have rentals also and plan to have more. There is a REI that meets at the spaghetti factory every last tuesday of the month at 6:30 pm
Investor · Stockton, CA · Member since 2017 · 21 posts · 7 votes
9y
Hello all.. I am new to BP, investing and to Stockton. I am from the bay area and recently married (my wife was born and raised in Stockton), bought a home and started my family in Stockton. I love the hometown pride of the people in Stockton and would like to start flipping houses in Stockton and the surrounding areas. Looking for advice on areas, good contractors and agents to use. Any advice would be greatly appreciated!
I'm based out of Manteca, and am looking to buy some more rentals in the valley.... I'm interested in opportunities in the Stockton area, so please feel free to reach out to me
Rental Property Investor · San Ramon, CA · Member since 2017 · 35 posts · 12 votes
9y
Hello, I am from the bay area and looking at multi family residentials in Stockton. I read through the chain and see that people have different perspectives on where to and where not to invest in Stockton, since the neighborhood can completely change in just a block. Wanted to get a perspective from individuals that live / invest in that area and would love to connect and chat about investing.