Stupid SoCal Misconceptions

[Stephen McKee]

I have lived in the Inland Empire my whole life. It has gone through 3 Major booms and busts. Every time there is an insane amount of inventory compared to every where else in SoCal. Currently we are in the best buyers market I have ever seen. Here's why...

1. Negative rent. Myself, along with several clients of mine are buying properties that cash flow 300-400 a month with an assumed 2 month vacancy rate. (high for SoCal)

2. It is not terribly expensive. The average purchase price in my area was 142k at 1680sqft average last month.

3. Taxes are going to go up. California has the sacred Prop 13. Taxes can only be increased at 2% per year and can be adjusted downward as fast as the market can decline.

4. These houses are in bad areas. WRONG! All the homes I buy are in middle class neighborhoods with an average commute of about 30 mins.

Any other crazy assumptions people have?