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Newbie potentially investing Barstow, CA...good idea?
I'm trying to get into REI because I want more time to spend with family, friends, and to focus on my health. My best friend is a real estate agent who's also getting into REI, but he's looking out of state. I'd like my first "deal" to be somewhat local so my friend threw out Barstow, CA as an option. Here's more of the specifics I told him:
- Small multi-family
- Semi-local location
- Looking for cash-flow
I know it's not much to go on, but I'm still figuring out the rest (i.e., budget).
Anyway, the main reason for my post is to ask, has anyone invested in Barstow, Ca? I've always had the general feeling that Barstow is not a great area (drugs, crime, poor schools). I did look at a crime map website and saw virtually no crime, which I assume I messed up the search (it was a quick search).
Another thing I was going to do is contact a property management company to see what their experiences have been in the area and if there are any "good" areas in Barstow.
My final thought is that I've typically been stuck in analysis paralysis and I'm trying to be more balanced (action supported by analysis). I've heard from BP podcasts that it's more important that I get in the game than have my first deal be a homerun, BUT I also don't want to strike out. Would investing in Barstow, CA just setting my self up to strike out?
Thanks BP community!
You would really need to consider if yu can deal with the quality of tenants you will be getting. If the houses are lower price, your tenants will be the druggies, gang members. How do you feel about trying to collect rent from them or evicting them? Its definitely business for some, not for me. I'd be scared they would kill or hurt me when I tried to get rent or evict them.
If you invest in the higher priced housing there, I would guess that the tenant pool would be limited as the people living in that market could buy their own house.
Maybe Helendale, Silver Lakes?
Every time I go to Barstow it looks like a city that has been dying for several years. More than 50% of the store are vacant and almost every property looks like a city dump. I am guessing that the only only thing to do in Barstow is sex, drugs and alcohol.
Why Barstow are you interested in other areas in Ca?
Originally posted by @Lynnette E.:You would really need to consider if yu can deal with the quality of tenants you will be getting. If the houses are lower price, your tenants will be the druggies, gang members. How do you feel about trying to collect rent from them or evicting them? Its definitely business for some, not for me. I'd be scared they would kill or hurt me when I tried to get rent or evict them.
If you invest in the higher priced housing there, I would guess that the tenant pool would be limited as the people living in that market could buy their own house.
Maybe Helendale, Silver Lakes?
That's what I'm worried about...quality of tenants. I'd be using a property manager, but that also brings up the question, would a property manager even want to manage properties in the area? Probably going to stay clear of Barstow.
Thanks for the input!
Originally posted by @Account Closed:Every time I go to Barstow it looks like a city that has been dying for several years. More than 50% of the store are vacant and almost every property looks like a city dump. I am guessing that the only only thing to do in Barstow is sex, drugs and alcohol.
Definitely what I'm worried about. Just wanted to confirm my suspicions.
Originally posted by @Natanya Vidales:Why Barstow are you interested in other areas in Ca?
I'm not interested in Barstow specifically. My friend (real estate agent) threw out some properties (2 four-plexes) that are pretty cheap (i guess for obvious reasons). I will say, when I asked him to send me small multi-family listings to analyze I wasn't specific of what locations to focus on.
Am I interested in other areas in Cali? Yes...just don't know where. At least, I don't know the areas that cash flow. I'd love to invest locally, but I've run numbers in my area and nothing cash flows which I guess isn't surprising.
I know you didn't ask this, but why Cali? Being new to REI we (wife and I) feel more comfortable investing "local" than out of state for our first investment property.
Oh okay I was just curious I am I am in Southern California as well and I too am looking to invest locally for the same reasons. I am new to RE investing. I’m actually looking to connect with others in the area not sure if you are interested.
The name of the town is not very important right now. Right now is a great market for flipping. And Barstow is as good as many other small and medium size towns. Now if you finances allowed it by all means invest in riverside corona oc la. But if ur limited in cash and financial reach like most newbies, Barstow is waiting.
Keep in my that we have peaked in most California markets for sometime now. Any California transaction even if a flip, must be looked at for a long term outcome . Employment and diversity of employment really matters . I hope this helps . Also there are other more diversified less expensive areas in California that still make sense despite what you hear and read about .
I actually live in Barstow and have a few rental properties that cash flow very well. Finding the properties that will work for you is not a real issue but like mentioned before you have to be careful with tenant quality and location. I love all of my tenants so it can be done but you have to be ready to really screen well and be patient/careful with everything that goes in to selecting great tenants.
Hi @Josh Yamada and @Natanya Vidales,
You've got a lot of good advice in this thread already, but here are my two cents. If you don't currently own your residence, I'd recommend considering a duplex to house hack. If you don't want to live in Barstow there are other parts of SoCal, maybe closer to where you are familiar, that can be a great starter to your portfolio. Even if you do currently own your residence, Riverside and San Bernardino county have options for cash flowing multi-family properties.
Let me know if I can provide further value and insight.
Hope this helps!
@Paul Haefele Do you self manage or do you have a property manager? If you have a property manager, would you recommend them? Are there areas that you would recommend to stay clear of?
@Charles Renn How would you recommend narrowing down search results for a "duplex"? Is it the multi-family filter? I feel like I don't seem to have much luck.
Hi @Alexis DalPont, as a real estate agent I use the MLS which offers more options to filter search results. The consumer websites like realtor, zillow, redfin have some sort of multi-family filter, but I don't use it when deal finding for my clients. Hope this helps!
@Alexis DalPont Hi Alexis, sorry for the late reply. I do self manage at the moment but the company I work for does have a property management department that is very good if that interests you as well. As for areas in Barstow I can't speak on specific areas on here of course but there are not too many that I would personally avoid.
@Paul Haefele Hi Paul, How’s the Barstow Market these days any good cash flow? Thank you