Cash flowing properties in Stanislaus/Merced/San Joaquin County?

Question

Hello,

My name is Kevin and I just joined BP last week. Excited to be here! My wife and I live and Turlock 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. Looking at SFH and small multi-unit properties.

I am learning that the prices around here are pretty hard to cash flow after expenses. It seems the only way will have to be finding off market properties. Went and looked at some places in Merced but they were south of 99. Rough neighborhoods to be in. Also looking at stockton but not too familiar with the area.

I have not been interested in flipping but maybe its the only way to get started here? I found a property but had two cash offers sight unseen by the time my realtor called.

Anyone able to use BRRR strategy in our area? If you are from here an investing elsewhere in the valley where are you investing? Would love some guidance from current investors! I am willing to learn and work with folks if necessary,

Also, I own a handyman business and do work after my day job and weekends. Not the cheapest but am all about being trustworthy and having integrity. I also return phone calls which I am learning people have a problem doing.

Thank you!!

Kevin Moules · Answer

@Albert Guerrero, no luck here in our area. I have begun investing in Fresno. Its still hard to find cash flowing properties down there but the rent/purchase ratios are better than here. I plan on finding off market homes here to be flips and use that money to purchase rentals in fresno or out of state.

Pree Singh · Answer

@Kevin Moules - I am in same boat as you are! Would like to to chat more about Turlock area and Fresno too!

Jean Marx · Answer

Re: Merced - We came to the same conclusion. The numbers just didn't work for what we were trying to accomplish at least not without more off-market effort than we were willing to put in. Our buy and hold focus has been in Little Rock, AR. We have an partially accepted short sale offer there now - Fingers crossed!

Re: Montana - I am! It's a fabulous place :) The closest I've been to Fishtail is Red Lodge. Nice area. I'm from Hamilton, MT (on the western side of the state in a gorgeous valley south of Missoula).

Re: Lodi Meet-up - We'll have to check it out. Almost all of the meet-ups I've been too have been in Sacramento. It would be fun to branch out. I noticed the last one just happened, so I'll keep my eyes out in a few months.

-Jean

Carrie K. · Answer

This is probably too obvious to be useful, but have you looked into house hacking? I'm currently looking into house hacking combined with rehab using a loan like Homestyle that will also cover rehab costs. I bet you could get cash flow if you bought a large lot single family and built a separate "accessory unit" cottage in the back yard or converted the garage to a rental. Good luck!

Kevin Moules · Answer

@Hobie Day, crazy how an old thread can gain new life when people come across it. I think house hacking is possible. I would like to find a live in flip opportunity around me but everything on MLS is obviously very hot price wise even if its in bad shape. A 2/1 950 sq ft house that needs a complete rehab and in a bad part of town just sold for 170 cash. We actually begun our search in merced almost 2 years ago now. I analysed it probably 30-50 homes and could not get them to cash flow and rent prices. So i started looking elsewhere.

@Jean Marx, I know folks who invest there and I have looked there but again it seems that there is no cash flow unless you put a large down payment. I could be wrong as I did not spend too much time looking there and moved on. As l go deeper and deeper into this thing it really seems that you are going to have to find off market deals to make something work and it has to be a killer deal. Even a flip home in my area will not cash flow at 20% down at the pre-rehab purchase price. That's why my wife and I are going to pursue flips here and do buy and holds elsewhere. Even Fresno places on MLS are hard to cash flow. I see you are originally form God's Country! I LOVE Montana! My father in laws entire family is from there and I visited for the first time 3 years ago. Its sooo beautiful. From a little town called Fishtail.

On another note there is a meetup once a quarter in Lodi that I try to make. Mike Kistner puts it on. Its a nice time to hang out with other investors. Hope to run into you there soon.

On another note there is a meetup once a quarter in Lodi that I try to make. Mike Kistner puts it on. Its a nice time to hang out with other investors. Hope to run into you there soon.

Jean Marx · Answer

Hi Kevin - We were looking at Merced when my oldest was considering the university. It was a year or two back. Lots of growth with the planned expansions at the school. Not a bad market but we were newer and split between too many markets. We weren’t finding enough that met our criteria for buy and holds so we refocused on keeping the pulse on fewer markets. Our realtor their did mention that the students often stay in the newer developments closer to the school verses the downtown area. As for Stockton, my husband has a client that just bought a live in flip there (that guy has done a few in the area. I also know he’s been watching that market for another client. If you want his feedback on the area/neighborhoods, send me a message and I’ll give you his contact info or have him reach out. Good luck on your search!

-Jean

Hobie Day · Answer

@Kevin Moules yes I agree it is hard to find cash flowing properties in the San Joaquin Valley. I just bought a 2 unit property in Stockton next to UOP and am planning on house hacking it. I am living in one unit now and getting the second unit ready for rent and I may need a handyman at some point..

But there are definitely good pockets of neighborhoods in Stockton to look in for potential deals! And Merced may also be a good location due to the university expansion although I haven’t looked too much into that yet.

Albert Guerrero · Answer

H! Have you had any luck?

Cash flowing properties in Stanislaus/Merced/San Joaquin County?

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