Marlen Weber
Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
6y
@Hamilton Chen are you looking to stay in markets in California, or anywhere in the states?
0 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
From looking around, California does not seem to have many areas that cash flow. I'm open to looking all over.
0 Reply
Twana RasoulBusiness Member
Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
6y
@Hamilton Chen I would look at your area versus going out of state for first property. You should be able to find initial cashflow neutral deals in your area or slightly negative but as rents go up year over year that will take care of it. Also, if you are willing to do a little value add I'm sure you can find in some areas around you with a little bit of cashflow as well.
Best of luck!
Compass5122 Reviews
Website View Page
5 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
Any recommendations for cities in Southern California?
0 Reply
Account Closed
Flipper/Rehabber · Cincinnati, OH · Member since 2020 · 300 posts · 417 votes
6y
Hi @Hamilton Chen congrats, that's awesome! Like @Twana Rasoul said, I would highly recommend not going out of state for your first property (or even first few properties for that matter). I'm not very familiar with the southern CA area, so unfortunately I can't offer much help with that. What I will say is, that starting out, it's so important to just get experience, and you can always grow and invest out of state from there. It's incredibly beneficial to learn the nuances of investing through personal experience locally, before getting involved with investing in other states, because that adds an entire new level to the process.
6 Reply
Brandon Carlson
Real Estate Consultant · Glendora, CA · Member since 2019 · 314 posts · 95 votes
6y
@Hamilton Chen Based on your budget you may have to look in San Bernardino to find a duplex.
5 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
@Brandon Carlson Are there cities where there are properties that are cash flow positive in California? Regardless of budget??
2 Reply
Kashawn RileyPro Member
Member since 2017 · 1 post · 2 votes
6y
@Hamilton Chen San Bernardino is a great start. I have two multi-family houses in the city of SB. You may also want to check Hemet, Indio, And Victorville.
2 Reply
Carlos Ortega
Realtor · Indio, CA · Member since 2019 · 23 posts · 6 votes
6y
there's not many duplex in Indio that I know of perhaps none, there are plenty in cathedral city but not for 300k.
1 Reply
Giovanni L.
Investor · Alpine, CA · Member since 2020 · 9 posts · 3 votes
6y
Hey Hamilton, I actually live in the Hemet/San Jacinto area. There is a Duplex here in San Jacinto right in front of the middle school. Let me know if you want more information.
1 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
@Giovanni L. I would love to have more information. What's the best way to reach you??
0 Reply
Mikael Winkler
Rental Property Investor · Columbus, OH · Member since 2015 · 344 posts · 258 votes
6y
Originally posted by @Twana Rasoul:
@Hamilton Chen I would look at your area versus going out of state for first property. You should be able to find initial cashflow neutral deals in your area or slightly negative but as rents go up year over year that will take care of it. Also, if you are willing to do a little value add I'm sure you can find in some areas around you with a little bit of cashflow as well.
Best of luck!

This is a great point. Cashflow is great, but it's also valuable to think about the appreciation over time, as well.I would never suggest going deeply cashflow negative banking on appreciation, but a biiiit negative, neutral, or a bit positive wouldn't be the worst thing in the world. Especially as rents continue to rise hopefully. IMO, the value add is definitely the way to go, though. Creating more cashflow by making it a better unit AND benefiting from appreciation.

0 Reply
Giovanni L.
Investor · Alpine, CA · Member since 2020 · 9 posts · 3 votes
6y
Originally posted by @Hamilton Chen:
@Giovanni L. I would love to have more information. What's the best way to reach you??

Pm'd you

0 Reply
Don Alder-LaRue
Real Estate Agent · Palm Springs, CA · Member since 2016 · 81 posts · 112 votes
6y
Hamilton,

Your price range is very limited in the Coachella Valley. Here's what I have found:
Palm Springs: 0 Duplexes on the market, 4 Triplexes ranging from $495,000 to $900,000
Cathedral City: 3 Duplexes on the market ranging from $359,900 to $459,000. 3 Triplexes ranging from $399,000 to $450,000
Rancho Mirage: No multifamily currently on the market (not surprising)
Palm Desert: No actual duplexes or triplexes currently on the market. There's an SFR with a garage that an agent is trying to market as a potential duplex after the garage is converted, and there's a 2 unit property that needs to be torn down and the agent says a 7 unit property could be built in its place.
Indian Wells: zero on the market (not surprising)
La Quinta: 1 triplex listed at $949,000. Zoned for business and residential, located in old town La Quinta.
Indio: 2 duplex on the market at $230,000 to $265,000 and 2 triplex ranging from $300,000 to $419,900.
Most of these properties DO NOT MAKE SENSE, and many have no information on current rents. I have run numbers on some of these properties and have found a few that make sense. They are out there, but are not easy to find.
5 Reply
Joseph Bafia
Investor · Raleigh, NC · Member since 2019 · 314 posts · 280 votes
6y
definitely don't need to look at in-state only, unless that's your comfort level. Plenty of opportunity with bang for your buck in other cities. As an example, my son is buying his first duplex in NC for $30k. Will need approximately $20-$25k in Reno and will appraise likely at $75k and rent for $425/door or $850 total. There are values all over and if you find the right team, long distance shouldn't be too scary. With $200k-$300k, you can scale much faster in a city with better affordability.
8 Reply
Zeke ListonBusiness Member
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
6y
If you're interested in investing OOS, I would check out Columbus, OH @Hamilton Chen!
[email protected]614-665-5793
Forge Real Estate Advisors535 Reviews
View Page
1 Reply
Don Alder-LaRue
Real Estate Agent · Palm Springs, CA · Member since 2016 · 81 posts · 112 votes
6y
In San Bernardino there are only 2 duplex units on the market under $300K. I have not run numbers on either of them and only took a quick look to find those. Banning/Beaumont adds two more..again I have not looked further than just the list price.
0 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Hamilton Chen:
Hi, I'm a new investor looking for a class B or C duplex that cash flows.

What are some good markets to look at? Looking to starting investing ASAP. My budget is around 200-300k

I would recommend looking in Columbus, Ohio if you are looking to invest out of state. I assume with your budget you are not looking in Cali.
[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
0 Reply
Account Closed
Real Estate Agent · Oklahoma City · Member since 2020 · 46 posts · 35 votes
6y
Hey @Hamilton Chen,
If you're going for cash flow out-of-state, the Midwest is where a lot of investors look to.
I'm biased for Oklahoma City, but we're more of a cash flow market with little appreciation. It will depend on your goals as an investor if that is something you are interested in.
Other areas I hear are good is: Kansas City, Columbus, Little Rock, Memphis
Good luck!
2 Reply
Gene Davis
Member since 2020 · 4 posts · 0 votes
6y
Are you interested in Texas, Houston area to be more specific?
0 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
@Don Alder-LaRue. Yeah. From people I talked to, it's really hard to find good properties In Southern California. Places that cash flow don't seem to have much potential for a lot of appreciation.
0 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
@Joseph Bafia. Thanks!! I'll look into it!
0 Reply
Hamilton Chen
OP
Corona, CA · Member since 2016 · 11 posts · 8 votes
6y
@Zeke Liston. Thanks!
1 Reply
Don Alder-LaRue
Real Estate Agent · Palm Springs, CA · Member since 2016 · 81 posts · 112 votes
6y
@Hamilton Chen if you're looking for appreciation, don't look at Duplexes, Triplexes, or Quadplexes in SoCal. Stick will SFR homes priced around 70% of the market median or less in better areas. Finding these under $300K is gonna be VERY difficult though, especially if it cash flows appropriately. If you can find one, it's probably your best bet.
2 Reply
Don Alder-LaRue
Real Estate Agent · Palm Springs, CA · Member since 2016 · 81 posts · 112 votes
6y
@Gene Davis What are you finding in Houston? Investor friends of mine there are saying that capital gains returns are minimal if at all, and most are considering themselves lucky if they find 5% cash-on-cash return.
2 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.

No results found