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Best places in Southern California for buying rental homes?

What are the best places in terms of buying rental property? Single family or multi family or condos
  • June 08 2011 - US
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Answers (8)

It really depends on your budget. I have a few investors who've happily purchased in San Fernando Valley in Los Angeles CA. 2 bed 2 bath condos for 140k and rent at 1400.

Good luck!

  • June 10 2011
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I would think South Orange County or North County San Diego. Lots of good values.

It depends on your strategy, Oceanside has good pricing, but Carlsbad is look pretty good right about now IMO...
Good luck!
  • June 09 2011
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Hi Riaz,

On the Winchester property you noted, just make sure vacancy is relatively low. You don't want to have empty properties....can we say vandalism!

Also, make sure you understand the credit quality of your renters. Sometimes you might think oh boy rents are so good compared to the prices and I'll make so much money....but at the end of the first year you find out you had lots of vacancy, damage and credit loss because tenants move in and out and it never ends up being as good as you hope. So beware if it looks too good to be true.

Good luck.
  • June 09 2011
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..anyplace you can afford it.
  • June 08 2011
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I see in winchester california home around $175k giving $1600 in rent. Is there a problem buying in such areas?
  • June 08 2011
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Within 35 minutes of where you live. Go for moderately priced properties in working class areas with cash on cash returns of 4% + for SFR or MF and 6% + for townhomes and condos. Try to buy properties in good shape that don't need too much work.

If you buy condo or townhome make sure to review the HOA condition for financial, legal and operational issues. Lots of risk there that can be analyzed...after you have it in escrow but before you close escrow.

And if you can get one with a decent tenant already in it....great job! Good luck!

Oceanside is a decent market as long as 1-2 miles off coast....skip the properties right near the coast as you will find the cash on cash returns stink because a prize property's price is usually way too high for the rents it can generate! Of course if you put pencil to paper and calculate your returns that is the best starting point.
  • June 08 2011
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I am biased, but I think Oceanside has lots of great rental prospects. We are just south of the Marine base, so that keeps demand high, and our proximity to the water is a great asset as well. Each type of property (single family vs. condos) have their pros and cons. It depends on how much involvement you want in the upkeep, etc.

Thanks!
  • June 08 2011
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I like coastal South Orange County for rental property. Rental rates are high and rental properties don't stay on the market long. The availability is low and demand high. Coastal properties have maintained their value better than other areas, however now is a great time to buy, with prices being very affordable. 
  • June 08 2011
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