I am looking to connect in the Riverside, San Bernardino, Fontana areas. I am not local to the area, but I do have some family and associates in the area that will be helping me with my flips and rentals. I am looking to pick up my first property in early-mid 2020.
If anyone could provide pretty basic information in terms of investment real estate in the area that would be very helpful. Example: Hot zip codes, average ROI and CAP rate percentages, construction problems I can expect to run into. And so on and so forth.
I would appreciate any and all feedback! I will also need an agent in the area, so please feel free to reach out!
@Roman Miller Fontana and Riverside especially have zip codes that cover diverse neighborhoods, so they aren't very useful. As for cap rates on SFR you are probably looking at the mid 4% range for MLS stuff (at least stuff that is decent). As for flips most sell for estimated returns of 10% or less if paying cash. Anything else you'd like to know?
Let me know if you need a good contractor. I specialize in Inland Empire and Coachella Valley.
I personally specialize on working with sellers and some buyers in the IE (Inland Empire). My forte are the cities of Riverside, Corona, Norco, Moreno Valley, Fontana, Rialto, Redlands and San Bernardino.
If you are looking to buy and flip or hold; I would advise you to look into city of Riverside within the 92503 and 92506 zips. Those are HOT markets with entry level to High-end (92506) homes all within a couple of miles.
I personally stay at the entry level SFR since it's what moves fastest. Here you are realistically looking at an average ROI of 10%. I usually find my deals through a collaboration of the MLS (5%), wholesalers (30%), my own sphere of influence (50%) and direct mail (15%). Good deals are hard to come by and you better have your pricing down as far as REHAB costs.
The main problems (3 major ones) you will run into will be the high cost of material & labor (be very choosing with your next handy guy or contractor-they an either make you or break you), people breaking into your home (get tan alarm system for SURE!! Simply safe is a good one and affordable one) and finding a good agent to help you...there are so many rookies out there NOT really giving beneficial advise on how things REALLY work in these areas.
Good luck to you and when you are in Riverside try to connect if you can. I have a very cool office in DT a short walk from the Mission Inn Hotel.