what type of Re investing folks doing and what's going on with socal market ?

what type of Re investing folks doing and what's going on with socal market ?

Investor · orange county, CA · Member since 2026 · 8 posts · 4 votes

Hi, just curious sort of a pole but are majority folks here for example just flip homes that it or does anyone here flip houses as well as own retail and or apartment buildings and or self Storage etc invest in multiple different asset classes how has it been capital allocating it wise and time management wise, advice opinions are all welcome. Also me being in southern California this is my observation, I don't see to many infill spec homes at all unless its like ultra luxury the value of a lot is going for high price, I see mostly flip homes though like a deep remodel to sell type deal and see decent amount of fixer uppers whether from wholesalers or on MLS, on the commercial side I go on loopnet crexi I see like zero self Storage facilities for sale rare any mom pop they all have their kids running the place ant they want crazy evaluation for it, when it comes to retail I see decent amount of those, hotels/motels see few mom pop ones run down as well some of them are conversion projects for affordable housing or major work needed closed run down, so what's going on in socal market, like there abundant flip opportunists I see but other stuff is lacking compared I look in Dallas,tx Houston even parts of Florida Oklahoma I see more stuff, anyways feedback be nice.

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  • Staten Island, NY · Member since 2013 · 51 posts · 13 votes
    9h

    I'm in NYC, not SoCal, but what you're describing sounds a lot like here. When land is that expensive, ground up spec only pencils at the very top of the market, so what you mostly see is people buying the dated house and doing a deep remodel. The value is already in the dirt and you're just adding the finish.

    The storage and small motel thing isn't really a SoCal problem either. A lot of those owners have the property paid off, it throws off good money, and there's no pressure to sell, so they price it like they don't care if it sells. Texas and Oklahoma have cheaper land and a lot more new supply, which is why you see more of it listed there.

    Most of what I do is residential, 1 to 4 family around Staten Island and the rest of NYC, because I know those numbers cold. When I look at anything else I run it the same basic way. What is the real NOI today off rents actually collected, not the pro forma, and what cap rate are buyers paying for that type of property right now. If a mom and pop seller can't show you real numbers, that tells you a lot about the price too.

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