Cash flowing properties in Yuba City?

Question

Hello,

My name is Kevin and I just joined BP last week. Excited to be here! My wife and I live and Turlock, CA and looking to start our REI. We have a primary residence at this time only. Currently pre-approved for a loan and looking for properties in Stanislaus, Merced, and San Joaquin Counties, however my wife is from originally from Yuba City.

I am learning that the prices around where we live are pretty hard to cash flow after expenses. It seems the only way will have to be finding off market properties. This being said I have pondered in possibly investing in Yuba City since I have been going there since meeting my wife in 2013. It kind of reminds me of Turlock, about the same size and feel, except for the chickens of course (if your in YC you know what I mean :) )

It would seems that folks working SAC and bay area may purchase here to make their commute. Maybe it is a wrong assumption.

We would like to focus on buy and hold rental properties looking at SFH and small multi-family units. How is the market here? Any thoughts or advice. I have not reached out a realtor at this point since we plan on managing our own properties and having a management company do it 2 hours away does not appeal to me at this time. However, desperate times call for desperate measures. We are bound on being successful in this business!

For now I will comb through properties on Realtor.com to see if it is worth while pursuing.

Thanks!

Kevin Moules · Answer

Hello @Ben Howard, thank you for your response and insight. At this point this is only an idea I have floating around in my mind. I do currently have a realtor sending me search criteria specific properties in the counties surrounding me. Nothing exciting at this point,. However, if nothing comes across in the next 90 days I will broaden my search area and possibly look at YC. If that happens I will be contacting you! Thanks for the reply.

Kevin Moules · Answer

Hello @Tim Jones, I think I sent you a colleague request but maybe not. I have been talking with @Letitia Harris about the market in Merced. I would love to meet up with you folks just to continue with my RE education. To me it looks like Merced is my only viable option to get my foot in the door. Anything around Turlock area is pretty much eaten up before you can touch it. Thanks for the encouragement!

Tim Jones · Answer

@Kevin Moules

Welcome aboard and happy investing! We do meetups from time to time here in Merced. We're actually overdue for a meeting! Two of the group are working on flips and I'm closing on a property next week. Things have been a little crazy but I'll have to set up a time we can all meet.

Best of luck to you!

TJ

Kevin Moules · Answer

Thank you @Pat McGrath for the information. I have been through Marysville several times and have seen enough to know not to invest on that side of the river. If we end up investing in YC I will take your info into consideration.

thank you!

Pat McGrath · Answer

Hi Kevin, i've spent quite a bit of time in Yuba city & helped a client close one there last year, which is about 30-45 minutes commute from me in Lincoln, just outside roseville. I have some very close friends that live there as well. Its ratios are not much better than sacramento. However, it does have a lower entry level and has quite a few homes that generally need work. Its like any city though, where it has 'good' areas and not so good areas. There is definately more business investment in the area and growth potential compared to Marysville....though egdewater development in southern marysville is new. I know a few people that live there and commute down to lincoln/rocklin/roseville (but thats about the extend). The traffic right around pleasant grove blvd to hwy 80 on hwy 65 is almost always backed up. Its really annoying. Plumas lake area is also a bit closer to sacramento on hwy 99 and there is more commuter traffic from there to sacramento and surrounding areas.

That all being said, YC is a pretty spread out city. You have different areas within it that can be good, bad or something in between. Many many of the people that live there, work there, or in nearby ranches.

Jo-Ann Lapin · Answer

You are welcome to to pm and I have realtor that may be able to assist

Jeremy Brown · Answer

I’ve known of a couple people living in YC and commuting to Roseville. It’s not for me, but people do it.

I’ve looked at property in YC a couple times. The rent and purchase-price per square foot is lower than Sacramento, but the rent:purchase-price ratio seems about the same as the Sacramento area, so I haven’t put much effort into finding something there. I stay closer to home, instead.