Philadelphia, PA · Member since 2014 · 178 posts · 64 votes
At the end of March I'm going to a wedding in Tucson AZ, and am planning to turn it into a vacation by heading to California from there. Wondering where to go? What to check out? I often fantasize about moving there and escaping the cold NE winters... What are the RE markets like? Where are there good profit margins for flipping and/or rentals?
I'm planning to visit an aunt in Santa Monica, maybe a friend in LA... Other than that have no plans. I'd like to check out at least one more city. Other than scoping real estate, I'm interested in seeing some architecture, maybe doing some hiking or camping... What attractions/features can ppl recommend to get a sense of what's out there?? I hear there's an ocean, but other than that have no clue. Thanks!!!
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
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@Nancy L. many people say the margins are tight, but that is all relative. I just posted about some properties I purchased in 2013. It was in response to a newbie from SF asking about Milwaukee. Also there is a post from me a few months ago about a 1% deal with seller financing that I got in Oakland.
I just spoke to somebody from Philadelphia this past weekend and were comparing notes. The raw numbers for investment were different, but the percentages seemed to track fairly closely between the two markets. This is by no means any type of real analysis. We were just talking about 2 specific deals, so there might be a much wider swing and it just happened to be that our deals came out to similar numbers.
As for finding success, there are guys doing the auction thing, the yellow letter thing, the bandit sign thing, all the strategies you would find in other places, people are using here.
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
11y
@Nancy L. that is like walking into all you can eat buffet and asking which three items you should try...hahaha. Being from the SF Bay Area, I would say come up north and get a taste for the difference between Southern California and Northern California. You did not say how much time you have for this additional journey, so it is a little hard to say. With that being said, I am sure you will get to see the ocean when you are in Santa Monica/LA and enjoy all the great stuff down there. If you come up north, you could easily spend a week in SF alone. But you should head out the wine country and spend a day tasting great wine and eating even better food. If you want to go hiking or camping, there are great trails/spots within an hour of SF.
Philadelphia, PA · Member since 2014 · 178 posts · 64 votes
11y
@Arlen Chou Great suggestions, thanks! I hadn't even thought about wine country! :)
I know that's a pretty broad question... I do have up to about 2 weeks though, so am happy for any/all random suggestions! From past trips I've tended to like to spend 3-4 days per city, so in addition to LA could visit at least 2 more cities easily... San Fran was actually top on my list!
I am wondering about the RE markets... Is it true that margins are tight in most of CA for investments, and if so, where and how are people finding success?
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
11y
@Nancy L. many people say the margins are tight, but that is all relative. I just posted about some properties I purchased in 2013. It was in response to a newbie from SF asking about Milwaukee. Also there is a post from me a few months ago about a 1% deal with seller financing that I got in Oakland.
I just spoke to somebody from Philadelphia this past weekend and were comparing notes. The raw numbers for investment were different, but the percentages seemed to track fairly closely between the two markets. This is by no means any type of real analysis. We were just talking about 2 specific deals, so there might be a much wider swing and it just happened to be that our deals came out to similar numbers.
As for finding success, there are guys doing the auction thing, the yellow letter thing, the bandit sign thing, all the strategies you would find in other places, people are using here.
Philadelphia, PA · Member since 2014 · 178 posts · 64 votes
11y
@Arlen Chou Gotcha... I guess it's never good to overgeneralize... CA is a big state, I'm sure there must be lots of opportunities.
Where are people investing in terms of cities and neighborhoods within those cities?? How is San Diego? Based mainly on things I thought I heard somewhere (not the best source), I was under the impression that San Diego was a bit more affordable and is on the upswing.
Real Estate Investor · Fresno, CA · Member since 2014 · 6 posts · 3 votes
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If you decide to take in San Francisco I would recommend A drive to the Napa Valley Wine country, pretty time of the year there. You might also enjoy a trip over to Sausalito and some hiking in the Pt Reyes National Seashore.
Investor · Antioch, CA · Member since 2013 · 79 posts · 58 votes
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Yes, come to Northern California! The Sonoma and Napa Valley wine country is great (I recommend renting bikes—there are many trails and beautiful scenery). There is a ferry that runs between San Francisco and Sausalito, with exceptional dining and shopping on both ends. You might get a kick out of walking around downtown Berkeley and near/on the UC campus (very eclectic, also with good food).
With respect to real estate markets... it's generally true that CA is more expensive and tends to have lower cap rates than most other markets in the US. The closer you get to urban centers such as San Francisco, San Jose, Los Angeles, San Diego, etc. this becomes the norm. I've noticed that the lower-priced properties that have a bit more cash flow are in the Central Valley, but that's a unique place with unique demographics & agriculture-based economics that deserves a post on its own. For vacation purposes, I'd stick to the beach towns in SoCal you mentioned or the cities already recommended by others above in NorCal.
I love California. It's my home, and I love to share about it! Feel free to send me a message and I can help you figure out some can't-miss spots that match your interests, whether in the north or south. Have fun!
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
11y
@Nancy L. I lived in SD for a few years, and I loved it! I am sure that there are many opportunities in that area, but I don't have much exposure. I had bought a condo in the "Golden Triangle" near USCD many years ago. I never had problems with finding tenants and it was always cash flow positive. My target renters at that time were college students. There are 3 large universities in the area, so there are always new potential tenants. I ended up selling it because I decided to focus on my own "back yard". If you do come out to CA and decide to come to the BA, let us know. If your timing works out, you might be able to come out to a meet-up. The one being hosted this Thursday by @J. Martin has over 100 people signed up!
Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
11y
@Nancy L. I am from South Jersey and went to college right outside Philadelphia. I am warning you, you may not want to leave. Just be prepared. I visited four years ago and decided to stay. That being said, there is some really cool real estate out here. If you are looking for cash flow, you may want to check out he areas where the wedding is. If you are cool with breaking even and possible appreciation, there are some cool areas outside of LA. You mentioned you are visiting Santa Monica... the real estate there is really cool (north of Montana and West of Lincoln... you'll understand when you get here). We have some great RE meetups, but I am not sure if that's how you want to spend your vacation.
Philadelphia, PA · Member since 2014 · 178 posts · 64 votes
11y
Thanks so much everyone! I can't wait!!! :)
@Jon Huber I have no doubt.... It is soooo cold here, and there's a layer of ice over everything!!! I'll be sure to check out the area that you mentioned near Santa Monica. Are there other areas outside of LA you would suggest?
Jon and @Arlen Chou yes, I'd love to go to any meetups! Even though I'm probably a ways out from moving if I do it, meeting other investors would really help give me an idea of what that would be like... Also I only know a few people in CA and will be traveling solo, so having things to do in the evenings and meeting local people would be great!
@Erin A. and @Jim Edmunds Thanks for the wine country suggestions... I'll definitely have to check that out! Erin, I'll be messaging you later for more ideas! I would be interested to know more about Central Valley, though would hesitate to invest somewhere with an economy based mostly on one sector, particularly a sector that I know nothing about like agriculture...
Investor · Santa Barbara, CA · Member since 2014 · 96 posts · 23 votes
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Yes, definitely come to Santa Barbara! We need your tourism dollars! LOL. Seriously though, our town is lovely and is on the way to San Francisco. We even have our own little wine country in the North County.
In terms of investment opportunity, things are pricey out here, but I don't think it's impossible to find deals that could generate a decent return. The starting price just might be a bit higher than other areas. Or possibly a lot higher -- honestly, I am shocked everyday by what houses can fetch around here!
@Jon Huber I have no doubt.... It is soooo cold here, and there's a layer of ice over everything!!! I'll be sure to check out the area that you mentioned near Santa Monica. Are there other areas outside of LA you would suggest?
Jon and @Arlen Chou yes, I'd love to go to any meetups! Even though I'm probably a ways out from moving if I do it, meeting other investors would really help give me an idea of what that would be like... Also I only know a few people in CA and will be traveling solo, so having things to do in the evenings and meeting local people would be great!
@Erin A. and @Jim Edmunds Thanks for the wine country suggestions... I'll definitely have to check that out! Erin, I'll be messaging you later for more ideas! I would be interested to know more about Central Valley, though would hesitate to invest somewhere with an economy based mostly on one sector, particularly a sector that I know nothing about like agriculture...
Hey Nancy - anything on the coast will be pretty much amazing!!!
we live in Laguna Beach (10 years now) - google it - totally a slice of heaven!!
I think the temp. yesterday was 75 degress..
yuup - the margins are getting a little tighter now - our average fix n flip is about 50K net / net..... telling my wife, she better start liking TOP RAMEN
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
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Nancy, Long Beach, CA is still looking like there are more entry level opportunities. You can still find stuff sub 300k. https://www.redfin.com/city/10940/CA/Long-Beach
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
11y
For sure Nancy! I love the city light views. It looks like that movie Tron. I have done a couple helicopter tours. Sometimes they are remarkably cheap. Less than even a surf lesson:) I will check again.
Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
11y
@Nancy L. I compare Hollywood like Times Square. If you've never been, you should go. Once. If you are a local, you avoid it though. You should go to Santa Monica, and drive up the Pacific Coast Highway to Malibu. There is some REALLY nice real estate there. Also, the mountains go to the ocean. One of the things I liked, coming from the East Coast. San Diego is a two hour drive, and is nice to go if you've never been. Of course, these are all general ideas. It's tough to do LA in a day or two.
Investor · Pokolbin, NSW · Member since 2014 · 67 posts · 22 votes
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@Nancy L. take the drive from LA to SF heading through Santa Barbara County to visit @Account Closed then onto the San Luis Obispo County. It's a beautiful coastline. You could even continue on the coast road (Hwy 1) through Big Sur. One of the great drives.
It's a big state with plenty of options. Good luck.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
11y
Oh geez, where to start! I live in Venice Beach, so right next to Santa Monica. That whole strip is good. All the beaches all the way down into Orange County are great. Would be hard to pick just one. Malibu is awesome and has amazing hiking. Lake Arrowhead and those out east are gorgeous. There's hiking for days, and some insanely cool ones.
Hmmm...thought I could give you more but too hard to narrow it down!
Flipping can be great out here (but be ready for high capital flipping), and rentals are not so great here.
Investor · Great Falls, MT · Member since 2014 · 163 posts · 132 votes
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I spent 5 years in Monterey, California. If you want to go vacation where most locals in CA go that's where it's at. It is, in my opinion, the most beautiful place in the country. Driving Highway 1 from the south up to Monterey is incredible. The hiking at Point Lobos is jaw dropping. Carmel, Pacific Grove, the Monterey Bay Aquarium. and you're only about an hour away from SF. I would never chose CA to live or invest in. But I love the Monterey bay and seriously miss it. London Bridge Pub on the bay listening to the Seals bark and the clanking of the sailboat masts. Best place ever.
And then, if you're adventurous you can always make a midnight trip to the famous… The Smell. You never know what hip "tomorrows 'it' band" you might get to see there.
Philadelphia, PA · Member since 2014 · 178 posts · 64 votes
11y
@Matt R. Thank you so much for all the great suggestions! It definitely sounds like I should rent a car at least until I get to San Fran so that I can get around to see as much as possible!!!
@Francis A. Yes, my tastes run toward all of those genres!!! :) I don't get out to see as much music as I'd like, but will definitely try and make a point of it!
@Joshua McGinnis Thanks so much for that list, especially the housing tour sounds perfect... Great pics!
@Matt R. and everyone else... Does anyone happen to know where the more populated camping areas in late March/ early April might be? Can't imagine a vacation without some camping, especially in a place with such gorgeous outdoor areas. But since I'll be traveling alone, I'd prefer more populated areas for safety reasons and for company!
Thanks again so much to everyone for all the helpful info!!! Do keep me posted if there are RE meetups etc. happening around that time.
Investor · Antioch, CA · Member since 2013 · 79 posts · 58 votes
11y
Fantastic camping all throughout Yosemite National Park. You can get there by driving through part of the Central Valley, if you're curious to see what that's like. I'd also try camping somewhere along the Central Coast (Santa Cruz, Monterey, Santa Barbara, etc.) Really stunning views.