Any opinions on Redlands, CA? Or Riverside?

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Any opinions on Redlands, CA? Or Riverside?

Elijah Householder
Corona, CA · Member since 2017 · 43 posts · 12 votes

Hey everybody,

I am looking to purchase my first investment property soon. Fairly new graduate and packing away the savings right now to get my first purchase in (No prior experience in REI. However, I have been reading books for a while and work at an online mortgage lender. So have some but very minimal knowledge in the REI world). I am starting to do my due diligence and trying to lock down a location. Hoping to get a 2-3 unit property but open to SFH as well.

I have always been interested in Riverside. I went to school there and feel it is in a great central location for Southern California. However, as most of you know who live/invest there, it is not the most glamorous place (As of right now. Believe that could change). However, I feel like Redlands is a beautiful place but not as great of an overall location in Socal.  

Any opinions on this? Or any tips for what I should start doing/looking into? Totally open to any suggestions and would LOVE any help/advice you can give. Like I said, I have pretty much zero knowledge in the REI world so I would love to hear from the pros!

Best,

Elijah

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Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
6y

@Elijah Householder actually I believe you can break into the nicer areas in Riverside for under $400k, you'll be looking at 1500 sqft SFRs but that is just fine.  In particular, Orangecrest, Woodcrest, and Sycamore Highlands.  Those properties don't come up all the time so you need to be patient, because there are only a few models in this price range.  I've actually done this just last year, so it is possible.  You might also include Mentone in your Redlands search as it uses most of the same services and can at times be a bit cheaper for the nicer homes.

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  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Elijah Householder Both are some of the better options in SoCal.  I don't know where you went to college but if that is all you saw of the city, you may well have missed some of the nicer areas, which believe it or not can actually make some of the better investment properties.  Redlands is a bit farther out but it is really nice for the most part, but you don't really get that OC influence to bump up prices a bit.

    0Reply
  • Tyler Hungerford
    Real Estate Agent · Riverside, CA · Member since 2017 · 204 posts · 105 votes
    6y

    Hey @Elijah Householder, this is a really great question! First and foremost, congratulations on graduating from school man! Where did you go to college? LSU? CBU? or UCR?

    Having grown up in Riverside and currently living in Redlands, I can tell you that both are perfect markets to grow your rental portfolio. I love Riverside because of the economic opportunities that are continuing to grow and the diverse economy within this region. Riverside is the larger of the two cities and the neighborhoods vary a lot. Rental incomes however are very similar. Both regions are highly desirable and have a good mix of SFRs and Multi-family properties. I think for your first rental, you should consider going with a city you know well and in a neighborhood you would feel comfortable living in, especially if this is a househack situation. Both regions are going to offer similar price ranges for properties, so really it's just going to come down to personal preference! 

    0Reply
  • Marlen Weber
    Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
    6y

    Love both of those cities. Best of luck to you. 

    0Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Aaron K.:

    @Elijah Householder Both are some of the better options in SoCal.  I don't know where you went to college but if that is all you saw of the city, you may well have missed some of the nicer areas, which believe it or not can actually make some of the better investment properties.  Redlands is a bit farther out but it is really nice for the most part, but you don't really get that OC influence to bump up prices a bit.

     Hey Aaron!

    Thank you for the response! I do agree that Riverside has some beautiful areas! However, for the price range I am looking to purchase at ($300-$400k) I obviously wouldn't be able to break into these areas yet. Nor will I be able to, or expecting to be able to be in a "nicer" area in Redlands either. However, I feel the cheaper areas in Redlands could lend to a safer environment and potentially more stable tenants? This is pure speculation from me so I would love your opinion as someone who is experienced! 

    0Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Tyler Hungerford:

    Hey @Elijah Householder, this is a really great question! First and foremost, congratulations on graduating from school man! Where did you go to college? LSU? CBU? or UCR?

    Having grown up in Riverside and currently living in Redlands, I can tell you that both are perfect markets to grow your rental portfolio. I love Riverside because of the economic opportunities that are continuing to grow and the diverse economy within this region. Riverside is the larger of the two cities and the neighborhoods vary a lot. Rental incomes however are very similar. Both regions are highly desirable and have a good mix of SFRs and Multi-family properties. I think for your first rental, you should consider going with a city you know well and in a neighborhood you would feel comfortable living in, especially if this is a househack situation. Both regions are going to offer similar price ranges for properties, so really it's just going to come down to personal preference! 

     Hey Tyler! Thank you for the response! I Just graduated from CBU with a marketing degree! Loved the experience but glad to be done! 

    I have always enjoyed Riverside because I grew up right around the area. So I am comfortable with it and I believe it has great potential being that it is so close to Orange County, the mountains and even somewhat close to LA. The only thing that worries me is what I mentioned to Aaron. It seems like the lower priced areas in Riverside are not as nice and safe as Redlands. However, like I mentioned, this is pure speculation from my end. So I would love to hear your opinion since you have lived in both places!! I have never lived in or near Redlands. Only an occasional visit. 

    Best,

    Elijah

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  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Marlen Weber:

    Love both of those cities. Best of luck to you. 

    Thank you Marlen and awesome! Glad to hear some positivity about these spots!

    1Reply
  • Aaron K.
    Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    @Elijah Householder actually I believe you can break into the nicer areas in Riverside for under $400k, you'll be looking at 1500 sqft SFRs but that is just fine.  In particular, Orangecrest, Woodcrest, and Sycamore Highlands.  Those properties don't come up all the time so you need to be patient, because there are only a few models in this price range.  I've actually done this just last year, so it is possible.  You might also include Mentone in your Redlands search as it uses most of the same services and can at times be a bit cheaper for the nicer homes.

    1Reply
  • Chris Gawlik
    Investor · Yucaipa, CA · Member since 2011 · 162 posts · 232 votes
    6y

    Hold off on buying for a few months and see what happens with covid. Not that I'm an expert with the economy, but just wait 6 or 7 months and see what happens. Just my opinion, but I am applying for equity lines and getting ready for a pretty bad recession. I know things are going nuts right now with housing, but its not going to last. Everything in the entire world will be effected by this soon. Once the banks start to sound the alarm bells people will start to realize that the stock market is going to take another big hit and the housing market will follow.

    Bank of America Profit Falls 45% as it Prepares for Loan Default

    Many investors think this is not the same kind of situation as the last downturn in 2008 but I disagree. I think things are headed for a crash soon. That's why I sold my primary house and pulled out the equity to get ready for the coming crash. You can read about that here. 

    People Think Were Nuts 

    To be fair I sold my home before covid even started, but I feel even more strongly about a looming crash soon.

    0Reply
  • Brandon Carlson
    Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
    6y

    Congrats @Elijah Householder for taking that next step in Real Estate investing. Similar to you, I read a ton of books about investing, and listened to BP podcast.

    The areas your thinking of are great. I considered purchasing a multi-family in Redlands, but after some thinking, I may do Riverside. The location is ideal, and I'm a big proponent of purchasing near Universities. 

    Good luck on whatever you decide. 

    0Reply
  • Brandon Carlson
    Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
    6y

    @Chris Gawlik Do you see a crash or more of a correction? Home prices are pretty pricing right now, so not sure what's in the works. I agree with you on the banks, eventually, data will catch up and show the severity of COVID. 

    Not sure if that will impact SoCal or other areas of the country....

    0Reply
  • Chris Gawlik
    Investor · Yucaipa, CA · Member since 2011 · 162 posts · 232 votes
    6y

    @Brandon Carlson I don't think crash is to strong of a word here. I have heard so many diff things about why this will not be the same as 2008, but most of these people are deeply entrenched in the market with retirement accounts and over leveraged rental properties and vacation rentals.
    This is going to sound pretty anecdotal but, I take a walk every night with my family. Its a nice neighborhood and other people take there nightly walks around the same area. When I walk by people even young people, you can feel that they do not want to get anywhere near you, and I feel the exact same. I have not gone to wal-mart / target for the longest period in my life. I get everything online, but skip out on things that I really don't need right now because its a pain and I have to wait a couple days to a week right now. 

    This is not going to be over with for at least another year, and even after that some people are afraid to take a vaccine. This is going to change the face of the way business is done for years. I strongly feel this will have a much bigger impact on the economy than people are letting on right now. Business' do not want to tell you the real truth until they absolutely have too. They know there share price will take a big hit, but eventually the truth will come out and the trickle down effect from one business to another will be catastrophic. Right now its stimulus vs the economy, but they can't keep pumping money into the system for ever. Eventually they will have to let the pain in and its going to hurt pretty badly. 

    I am also willing to admit that I was wrong, so if none of this happens I will be the first to admit that I called it poorly. I even put my money were my mouth is and sold my home before covid even took place seeing a downturn on the horizon, covid just put the nail in the coffin for me. In the end you have to do what you think is right and do what your comfortable with. Good luck to you guys with your investing.       

    0Reply
  • Brandon Carlson
    Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
    6y

    I agree with you @Chris Gawlik I'm experiencing the same thing on my nightly walks, people are keeping their distance. 

    A few duplex's I acquired on are having issues collecting rent from tenants, and now are going through the eviction process. I see this getting worst in the foreseeable future due to owners over-leveraging. Hopefully, with patience, I can take advantage of purchasing at a discount, but who knows with SoCal prices. 

    0Reply
  • Richard Young
    Member since 2019 · 11 posts · 1 vote
    6y

    @Elijah Householder

    Hey Elijah I grew up in Redlands. Just left a year ago and moved to Idaho. If your looking to get into lower priced homes in Redlands I would start looking in the 92374 zip code which will be on the north side of the 10frwy. In my opinion the lower income side of Redlands is still a pretty safe area. Personally I would rather be in the sketchiest part of Redlands over Riverside. The lowest priced homes(lower income area) will start north of The 10 and east of the 210 interchange increasing in price the farther North and East that you go. Good luck’.

    0Reply
  • Account Closed
    Contractor · San Diego, CA · Member since 2018 · 432 posts · 221 votes
    6y

    @Elijah Householder hmmm.. It seems the Riverside county law enforcement is going to create a lot more confidence in the area. The more conservative and right wing, the more it’s in demand right now. Consider some more spots just a little South of you.

    0Reply
  • Lynn Dee Murrow
    Investor · Las Vegas, NV · Member since 2012 · 119 posts · 104 votes
    6y

    You might want to check out opportunities to buy in other states too.

    I am from So Cal but moved out because of the restrictions on property owners and they are getting worse not better. Be sure to read state and local landlord tenant laws. Before you buy understand restrictions on rent increases even for a new owner, missing this can foil your rehab plans. Rent control and eviction moratoriums that some lawmakers in California are trying to make long term if not permanent can be a problem and reduce income. Also check on source of income rules that may require you to participate in housing programs and be subject to their inspections and required repairs even when tenant caused. Check on your ability to screen residents too.

    0Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Aaron K.:

    @Elijah Householder actually I believe you can break into the nicer areas in Riverside for under $400k, you'll be looking at 1500 sqft SFRs but that is just fine.  In particular, Orangecrest, Woodcrest, and Sycamore Highlands.  Those properties don't come up all the time so you need to be patient, because there are only a few models in this price range.  I've actually done this just last year, so it is possible.  You might also include Mentone in your Redlands search as it uses most of the same services and can at times be a bit cheaper for the nicer homes.

    Hey Aaron!

    Thanks again for the response. I will definitely be checking out these areas. I have already started to check around on sites like Zillow and hopefully can start narrowing my search.

    Thank you again for all the advice! 

    Best,

    Elijah

    0Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Chris Gawlik:

    Hold off on buying for a few months and see what happens with covid. Not that I'm an expert with the economy, but just wait 6 or 7 months and see what happens. Just my opinion, but I am applying for equity lines and getting ready for a pretty bad recession. I know things are going nuts right now with housing, but its not going to last. Everything in the entire world will be effected by this soon. Once the banks start to sound the alarm bells people will start to realize that the stock market is going to take another big hit and the housing market will follow.

    Bank of America Profit Falls 45% as it Prepares for Loan Default

    Many investors think this is not the same kind of situation as the last downturn in 2008 but I disagree. I think things are headed for a crash soon. That's why I sold my primary house and pulled out the equity to get ready for the coming crash. You can read about that here. 

    People Think Were Nuts 

    To be fair I sold my home before covid even started, but I feel even more strongly about a looming crash soon.

     Hey Chris!

    Thank you for the response. I am totally with you on that and really don't even have an option to invest earlier then about 1.5-2 years. I just started a solid w-2 job and like I mentioned I should have enough saved by that time to invest around 20% of what I am looking to purchase. I could probably do a 3.5% FHA but would like to avoid mortgage insurance if possible. Plus I have some high balance credit cards (0% interest luckily) but need to get those out of the way to improve my score.

    I guess we will see what happens over these next few months though!

    Thanks again,

    Elijah

    0Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Brandon Carlson:

    Congrats @Elijah Householder for taking that next step in Real Estate investing. Similar to you, I read a ton of books about investing, and listened to BP podcast.

    The areas your thinking of are great. I considered purchasing a multi-family in Redlands, but after some thinking, I may do Riverside. The location is ideal, and I'm a big proponent of purchasing near Universities. 

    Good luck on whatever you decide. 

    Thank you Brandon! I really appreciate all the encouragement. I know once the time comes it will be scary but excited to get my first deal done! 

    1Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Richard Young:

    @Elijah Householder

    Hey Elijah I grew up in Redlands. Just left a year ago and moved to Idaho. If your looking to get into lower priced homes in Redlands I would start looking in the 92374 zip code which will be on the north side of the 10frwy. In my opinion the lower income side of Redlands is still a pretty safe area. Personally I would rather be in the sketchiest part of Redlands over Riverside. The lowest priced homes(lower income area) will start north of The 10 and east of the 210 interchange increasing in price the farther North and East that you go. Good luck’.

    Hey Richard! Thank you for the response! 

    I super appreciate the advice and insight from someone who grew up there! Like I mentioned, I do not have much Redlands experience at all. Just whenever I have visited I like how it feels! 

    I will start looking into those areas right away! 

    Best,
    Elijah

    0Reply
  • Elijah Householder
    OP
    Corona, CA · Member since 2017 · 43 posts · 12 votes
    6y
    Originally posted by @Lynn Dee Murrow:

    You might want to check out opportunities to buy in other states too.

    I am from So Cal but moved out because of the restrictions on property owners and they are getting worse not better. Be sure to read state and local landlord tenant laws. Before you buy understand restrictions on rent increases even for a new owner, missing this can foil your rehab plans. Rent control and eviction moratoriums that some lawmakers in California are trying to make long term if not permanent can be a problem and reduce income. Also check on source of income rules that may require you to participate in housing programs and be subject to their inspections and required repairs even when tenant caused. Check on your ability to screen residents too.

     Hey Lynn! Appreciate the response! 

    Thank you for all this wonderful advice! These are things that I never even think about so I love hearing about it and will start researching right away. 


    I have considered other states but as someone who is new to this game I believe it would make my first property a little easier if it was local for me. I am planning to manage it myself as well.

    Thanks again!

    Elijah

    0Reply
  • Lynn Dee Murrow
    Investor · Las Vegas, NV · Member since 2012 · 119 posts · 104 votes
    6y

    Glad it was helpful!

    0Reply
  • Cory Shea
    New to Real Estate · Redlands, CA · Member since 2020 · 12 posts · 5 votes
    5y

    @Elijah Householder I’ve never lived in Riverside, but I have been living in Redlands for the past 3 years and I absolutely love it. I myself am looking to buy my first Multi family rental property to start my investing career. Redlands does have a bit of a growing homeless problem. But overall Redlands is a beautiful and safe city to live in.

    0Reply
  • Tyler Hungerford
    Real Estate Agent · Riverside, CA · Member since 2017 · 204 posts · 105 votes
    5y

    @Cory Shea I live in Redlands too! I've lived in Riverside as well. It's a great place to live, but Redlands just has that extra level of charm that is hard to find anywhere else in the IE. Have you seen that triplex on Linda? Or the duplex on Buena Vista? Could be pretty sweet properties for your first buy. Would love to chat with you further. Cheers!

    0Reply
  • Cory Shea
    New to Real Estate · Redlands, CA · Member since 2020 · 12 posts · 5 votes
    5y

    @Tyler Hungerford Yes, I have seen the triplex on Linda! I haven't seen the duplex on Buena Vista however. I would love to connect with you! I'll message you. 

    0Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    Although I don't typically work on the Riverside area, I did just help a client house hack out there.  If you check out HowMoneyWalks.com, you will see that many people are leaving LA County and going to the surrounding counties.  This is an indication that you could be in good shape.

    One concern people are having is all of the warehouses being build in the IE.  Some are concerns that there will be both environmental and socioeconomic implications.  That's an entirely different debate but something to factor in for your target demographics for tenants. 

    It's really a value play there. I got my client into a 4 bedroom home with a 3 car garage. He is going to convert the garage into an ADU to maximize his rental potential. He got it for $535,000. Depending on where in Los Angeles that same home could go for $1M+.

    Happy to discuss further if you would like.

    0Reply
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