CA investors - which strategy worked best for you and why?

[Arya Feroz]

Hi BP community,

I am an aspiring investor who has tried to jump into the REI game a few times this past year but still no property, and truthfully, confused as to what the best strategy would be for me. I know this differs greatly for everyone, depending on current situation and desired outcomes, but I'd love to hear some examples of what has worked for other California investors!

Background: I'm in the SF Bay Area where prices come at a high ticket. I work a day job at a FinTech company and I'm looking to build a rental property portfolio over the next few years that replaces my salary, and allows for eventual financial independence. My sister and I tried offering on a number of properties in the Oakland/East Bay area but were outbid, and even with renting by the rooms, just wouldn't make a healthy enough ROI with our limited capital. We switched our strategy to the Fresno market where the lower entry points were very attractive but I'm noticing most of the homes are built in the early 1920's and rents aren't so strong to where I question if it is worth it to start in Fresno as opposed to an out of state market that might offer stronger ROI.

Any tips, insights, stories, or suggestions are welcome!! :)