What are good markets right now in souhern california?

[John Alanis]

for people investing in southern california, what markets are you invested in? Any out of state investors have business in southern california?

[Rick H.]

In this stage of the real estate market economy, late entrance to the game and limited opportunities seems to encourage buyers to become desperate and seek outlying areas.

This is a mistake.

Go back and look at the old property value charts by zip code. The Norris Group has produced some good material to study. 

If you look at each area, you'll see how volatile the SFR's prices are in these fringe markets.

Whether Kern, Central Valley, Vegas or Victorville, they all have higher risk of price drop when the market ranks (and it will).

Therefore, consider your leverage when you buy in the areas farther out and inner-city suburbs that get harder hit (Compton comes to mind). Make certain that your opportunity cash flows positively and does not primarily rely on appreciation. 

We are poised for another hit, perhaps after elections when the economy sobers up from frothy optimism and begins dealing with a new President. 

While it may make sense to be a desperate seller, avoid becoming a desperate buyer.