Anyone investing in so cal?
I’m looking into investing in San Bernardino County, IE, Lancaster and Bakersfield.
Please share your experiences
@Luis Torrico Yes, anything specific you want to know?
Hi! Thanks for replying. Yes, where do you invest in so cal? SFH, Multi? A lot of my so cal peers like to invest out of state and I think it's a good strategy but I know I can do it here.
1. Inland Empire
What are you trying to do? What goals are you hoping to achieve?
Aaron, there are so many strategies but the one that appeals to me is buy, hold, and rent. I want to build a portfolio and be able to manage my properties.
My ultimate goal is to work for myself and I can spend time with my family. I will stay at my W2 job until I get achieve that goal
@Luis Torrico I was going for a bit more specifics. cash flow numbers? ROI? things like that. If for example you're hoping to buy a property for $100k in SoCal and have it cash flow $300 per month that isn't going to happen.
I am looking for a 10% ROI
In your property, what is your cash flow? ROI?
@Luis Torrico it is possible but not from a cash flow perspective, if you count cash flow + loan paydown 10% is elusive but possible in SoCal if you throw in appreciation 10% is well within reach. My last in SoCal is a bit over 10% not including appreciation. Cash flow depends on how much you put down and how expensive the property is so it isn't a great metric to compare across properties in SoCal which can easily range from $270k-$600k
Thank you for your knowledgeable response.
If you currently live in an expensive Market like most areas in SoCal, an ADU could be a smart investment opportunity. I live in Los Angeles, and it is nearly impossible to cash flow here. Consider converting your garage into a rental property, if possible.
I’m looking into buying my first property.
A 10% return will be difficult there. A lot of people use it to park money which inflates the values.
Have you considered investing out of state? What about investing passively as a private lender on RE deals?
@Luis Torrico buy a duplex to start and house hack it then go from there. I do not recommend investing out of state for your first property. For total returning you should be doing over 10% here. Rent, appreciation, debt pay down.
Thank you! That’s what I was thinking.
You can find cash flow in Riverside and San Bernardino counties. Appreciation won’t be as much as LA county though. Just have to weigh the pros and cons. Don’t buy out of state your first property. It will be a hassle. Get your feet wet in your home state.
Thank you for the tip sir!
House hacking a triplex in Riverside that had a bonus mobile home/travel trailer unit(4th-unit), renovated all three one by one doing a majority of the work our selves and now make about $1200/mo after mortgage and expenses and live for free, in my opinion house hacking is a great way to get started in so cal!
Wow! That’s awesome! Thank you for the tip