New Investor: Help Choosing Between Redding, Bakersfield, Wrightwood, or Escondido
New to Real Estate · San Francisco · Member since 2023 · 6 posts · 2 votes
Hi everyone! 👋
I'm a new investor based in California and currently looking to purchase my first short-term rental (STR) property. I've narrowed it down to four markets I'm seriously considering:
Bakersfield
Redding
Wrightwood
Escondido
I’d love to hear your thoughts on:
Which of these markets you think has the best ROI potential in 2025
STR regulations, occupancy, and seasonality for each
Any personal experience investing or managing in these locations
Recommendations for agents, vendors, or property managers
I'm looking for a market that's STR-friendly and not oversaturated.
Would really appreciate any local insight or lessons learned — thank you in advance!
Each of those markets has different strengths. Escondido tends to have stronger year round demand but tighter regulations, Wrightwood is more seasonal with big winter peaks, Redding has steady outdoor tourism with new rules coming into play, and Bakersfield is more of a lower cost entry with modest STR potential. I'd start by checking local permitting first, then underwrite conservatively for off season demand so you don't get caught overestimating returns.
Feel free to connect if you’d like to share more insights
>Escondido tends to have stronger year round demand but tighter regulations
I am unaware of a single residential regulation in Escondido that does not apply to the entire state. For reference I have around 20 units in Escondido. They have no local rent control (ab2482 applies) and no STR regulations that I am aware of.
I believe the market is challenging everywhere.
It is my belief a high LTV MLS purchase in Escondido without a value add will have initial negative cash flow for quite a while (likely years). The appreciation historically been too high to suggest an unleveraged purchase as the return decreases. So it is only a good RE market if you do one or more of the following:
1) you can get alternative financing
2) buy significantly below retail (meaning not on the mls)
3) can do a value add
4) can be more patient than I am.
5) alternate rent models. In Escondido, I believe the top producing rent models (better than MTR and STR) is rent by room. There are a lot of single men immigrants that need lodging.
My last 2 purchases in Escondido were off market and one of those had a value add. Ideally combine some of the above.
Escondido has perhaps the best rent to purchase price in San Diego county, however it likely will still have initial negative cash flow. Traditionally Escondido has produced a good return (I have made a lot of money in Escondido - see my profile for slightly dated info on my Escondido properties (my profile may be missing an Escondido quad)), but it has got more challenging with the higher financing cost.
To be blunt, without one or more of the above I would not purchase in Escondido at this time. I am not patient enough, but I have confidence in 10 years an Escondido purchase will look good (are you that patient?).
I grade the traditional rental markets in Escondido between class b- and c-. There are areas above class b- but they are not the typical rental market.
If you have any questions on the Escondido RE market you can PM me. I believe I started purchasing in Escondido in 2012, have near 20 units, have done quite a few brrrr there, have purchased 2 times off market there, so a wide range of experience in that market. I know someone who MTR arbitrage there but mostly is exiting, so not profitable enough for her. In short, I know the market fairly well and likely as well as anyone on BP.
Good luck