All Forum Posts by: Elijah Householder

You might want to check out opportunities to buy in other states too.

I am from So Cal but moved out because of the restrictions on property owners and they are getting worse not better. Be sure to read state and local landlord tenant laws. Before you buy understand restrictions on rent increases even for a new owner, missing this can foil your rehab plans. Rent control and eviction moratoriums that some lawmakers in California are trying to make long term if not permanent can be a problem and reduce income. Also check on source of income rules that may require you to participate in housing programs and be subject to their inspections and required repairs even when tenant caused. Check on your ability to screen residents too.

@Elijah Householder

Hey Elijah I grew up in Redlands. Just left a year ago and moved to Idaho. If your looking to get into lower priced homes in Redlands I would start looking in the 92374 zip code which will be on the north side of the 10frwy. In my opinion the lower income side of Redlands is still a pretty safe area. Personally I would rather be in the sketchiest part of Redlands over Riverside. The lowest priced homes(lower income area) will start north of The 10 and east of the 210 interchange increasing in price the farther North and East that you go. Good luck’.

Congrats @Elijah Householder for taking that next step in Real Estate investing. Similar to you, I read a ton of books about investing, and listened to BP podcast.

The areas your thinking of are great. I considered purchasing a multi-family in Redlands, but after some thinking, I may do Riverside. The location is ideal, and I'm a big proponent of purchasing near Universities. 

Good luck on whatever you decide. 

Hold off on buying for a few months and see what happens with covid. Not that I'm an expert with the economy, but just wait 6 or 7 months and see what happens. Just my opinion, but I am applying for equity lines and getting ready for a pretty bad recession. I know things are going nuts right now with housing, but its not going to last. Everything in the entire world will be effected by this soon. Once the banks start to sound the alarm bells people will start to realize that the stock market is going to take another big hit and the housing market will follow.

Bank of America Profit Falls 45% as it Prepares for Loan Default

Many investors think this is not the same kind of situation as the last downturn in 2008 but I disagree. I think things are headed for a crash soon. That's why I sold my primary house and pulled out the equity to get ready for the coming crash. You can read about that here. 

People Think Were Nuts 

To be fair I sold my home before covid even started, but I feel even more strongly about a looming crash soon.

@Elijah Householder actually I believe you can break into the nicer areas in Riverside for under $400k, you'll be looking at 1500 sqft SFRs but that is just fine.  In particular, Orangecrest, Woodcrest, and Sycamore Highlands.  Those properties don't come up all the time so you need to be patient, because there are only a few models in this price range.  I've actually done this just last year, so it is possible.  You might also include Mentone in your Redlands search as it uses most of the same services and can at times be a bit cheaper for the nicer homes.

Love both of those cities. Best of luck to you. 

Hey @Elijah Householder, this is a really great question! First and foremost, congratulations on graduating from school man! Where did you go to college? LSU? CBU? or UCR?

Having grown up in Riverside and currently living in Redlands, I can tell you that both are perfect markets to grow your rental portfolio. I love Riverside because of the economic opportunities that are continuing to grow and the diverse economy within this region. Riverside is the larger of the two cities and the neighborhoods vary a lot. Rental incomes however are very similar. Both regions are highly desirable and have a good mix of SFRs and Multi-family properties. I think for your first rental, you should consider going with a city you know well and in a neighborhood you would feel comfortable living in, especially if this is a househack situation. Both regions are going to offer similar price ranges for properties, so really it's just going to come down to personal preference! 

@Elijah Householder Both are some of the better options in SoCal.  I don't know where you went to college but if that is all you saw of the city, you may well have missed some of the nicer areas, which believe it or not can actually make some of the better investment properties.  Redlands is a bit farther out but it is really nice for the most part, but you don't really get that OC influence to bump up prices a bit.