How is Fresno's market?

59 Replies | Fresno, California

Hi BPer's of Fresno!

I'm starting out in my journey in REI and am looking at several markets. I'm currently residing in San Jose, CA. As you guys know the state of affairs, I'd rather not invest in that area since it doesn't cash flow at the moment.

I'm interested in investing out of state, but plenty of people have said to look locally, just further away. So here I am looking at Fresno! I'm wondering about people's thoughts with Fresno and cash flow.

I'm looking for distressed SFH and multifamily units to rehab with purchase prices at 200k. Ideal tenants being long term family renters, probably 3 bedroom units. I'm wondering what kind of CoC and cash flow Fresno can get with these criterias.

I've looked on redfin/zillow and comparing some rent on craigslist/rentometer and there are definitely some great looking properties in the sub $100k range where the neighborhood has rents for ~ $1000.

Am I being silly in my superficial analysis? Looking for some more insight from a Fresno pro!

Thanks!

Andrew, Im a San Jose resident and have properties (all sfh) in Fresno CA.  

All of the homes we own were are purchased in 2013 and 2014 around the 125k range in C neighbor hoods. Rents are around the $1100 mark. Im sure you can get 100k per unit in but there not in areas I personally would want to own. 

PM me if you ever want to meet up for coffee to discuss more and good luck!

Thanks for starting this thread, Andrew. I am also looking into Fresno in last couple of months and planning to drive there to checkout some of the area. I personally looking more into 4-plex to 8-plex potentially for more cash flow. Personally, I choose SFH for the areas where I want to/can have cash flow & appreciation.

@Garrett Mayo , if you don't mind sharing, which area did you pick up your SFH in? How has market in those area changes in last few years for you?

Would love to join for coffee & sync up with you guys!

Cheers,

Myo

@Myo Thein not a problem. I currently am getting into multi units as we speak and have a few offers out. I do agree the cash flow is better, but I started in SFH to get my feet wet 3 years ago.

The areas I bought in were all North Fresno. Im sure this overall conversation can be debated but I stay north of Shields Ave. Anything below is just not what I personally am looking for. The market has changed (which is making me look into multi family homes) and the prices have gone up from when I bought. 

The first house we purchased in April 2013 for $125,000. It was a flip and had everything needed to move in a renter, which is what I was looking for at that time. Today that house is worth about $150,000 - $160,000 and currently rents for $1175.00 a month. 

Feel free to shoot if you have any other questions!

Hello Andrew Wong, 

Mr. Mayo hit it right on the head. I suggest you come take a look yourself, drive the neighborhoods of the homes you're interested in, and decide for yourself. As Mr. Mayo has said there are areas that you would probably not want to invest in as a buy and hold, but not to say it wouldn't be a great flip. The areas that would be considered C-B areas will run 140k to 220k respectively, and rent can go from 800 to 1200. There are some great neighborhoods in the north west section of Fresno. I would start looking there. Good luck in your search and welcome to Fresno.

If you guys meet up for a coffee in San Jose let me know. I live in San Jose but invest in the Fresno area as well. I have 3 SFR rentals and looking at others in the area.

Recently I was looking near Fresno State after listening to the Riches Are in the Nitches podcast on BP where a guy invests in college towns. Im in for some java.

Originally posted by @Andrew Wong :

Thanks @Kuang H. and @Garrett Mayo.

Are there some recommendations of the deliniations between what the B C areas are? Probably going to Google up a map later but figure it won't hurt to ask.

I dont have a map with A,B,C areas. One trick I can give is Fresno Google Street Views are usually very current (within the last 6 months) and when scanning the neighbor hood a house is for sale on, you can get a good idea of what you are looking at. I wouldn't 100% rely on this information when making a decision, but its a great place to start. 

It's hard to pin point areas like this on a map. There are general areas that can be considered a "C"  but when you go one block over, it's suddenly a war zone. Again Mr. Mayo has an excellent tip. Take a look at google maps street views, the neighborhood conditions tell a lot. I have the ability to drive these neighborhoods, and have gotten to know my city very well. If you have a question about a specific cross street just pm me and I'll do my best to tell you what I know about the area. Here is a link to the city crime map. It only goes back 30 days, but it's something good to look at too.  http://www.fresno.gov/Government/DepartmentDirecto...

Cheers,

Mike

There is also a meetup group in Fresno that is really starting to get some traction (hosted by BP members). If anybody wants to carpool down for a meetup we can organize that. They currently meet on Saturdays at lunch so we could leave after breakfast, be there by lunch, and be home before dinner. Fresno isn't that far, 2hrs from SJ.

http://www.meetup.com/Fresno-Deal-Seekers-Meetup/

Hey all, another person from the bay (SF) and potentially looking into investing in Fresno. My fiance is from Fresno and his uncle is a property manager there so it's a good fit. We'll be in Fresno again the first weekend in February, so as that date approaches I'll post in the Fresno meetup forum to see if we can make something happen.

A few months back we found some 8 unit apartments on Loopnet and drove to check them out. @Garrett Mayo 's suggestion and others to check them out in person is SPOT ON! After checking out the first two apartment buildings that were going for ~$300k we realized we would not want to own those buildings nor profit off their tenants. 

Re: "north of Shields", one time a local from Fresno told my fiance he looked like he'd never been south of Shaw. Hah! @Andrew Wong that's a nice area for sure, between N. Marks and N. Palm, above Shaw. No idea about the cash flow or investing potential though.

I'm currently looking into Fresno as well and have looked through some of the duplex-4plexes that are under 200k (probably the same that you're looking at) on Google street view. The areas do look a little more rundown. I am thinking of making a trip down there to better familiarize myself with the area. Since I haven't gone down there to really understand the territory, I've also been relying on the crime maps that are provided on Trulia to get a better sense of why it may be priced the way it is. Most of them were in red (high) crime areas which gave a better preliminary idea of why it is priced low. 

I think that is the struggle though about living in SJ/SF is that when we see these numbers and the idea that these multi-unit properties are going for under 200k it seems so appealing since with that much we can expect it to only cover a downpayment on a tiny condo in the city! We need to really focus on the location the property is situated and make very thoughtful analysis and conclusions of potential property. 

@Andrew Wong @Garrett Mayo @Jason Clark Account Closed Looks like our coffee meet up hasn't happened yet.  But there is local BP meetup happening tomorrow evening at 7.  Are any of you interested in meeting up before the meet up and talk about Fresno?  I drove down to Fresno couple of weeks ago and took a look at a few of the 4-plex and 8-plex.  I am planning to make a move there sometime this year, but would like to learn and share what I know.

Hello Myo - 

come on in - the water's great!  - Seriously though - there are still deals to be found in Fresno - especially if your looking for multifamily units. Next time your in the area give me a heads up - we have a weekly meetup of local Fresno investors that you would probably benefit from attending. We talk about whats happening locally - what new deals are on the table and even some private deals happen there. Also  - if your just seeing properties online and would like more info about them , you are more than welcome to contact me and I will help you in any way that I can. Best of luck to you!

Hi @Myo Thein , thank for the invite. I took an extended weekend off so won't be in SJ. I am interesting in attending these meetings but the timing isn't working out due to my crazy schedule. Have a good time tonight, thanks again for the invite.

I have 1 SFH, looking for more in Fresno. I live in LA but I was born and raised, left in 2010 after finishing college at Fresno state. I

Accidentally hit post and couldn't undo,

I have 1 SFH, looking for more in Fresno. I live in LA but I was born and raised, left in 2010 after finishing college at Fresno state. I like to rank the areas by high school. I grew up on kings canyon, went to Fresno high school, then Fresno state and lived north of Herndon for 5 years before leaving. If you have any questions about different areas I may be able to help. My family is still there so I visit quite often.