Investing in SFR in Southern California

[Pooja Jindal]

I am looking for recommendations on areas in Southern California where I can invest in a single family residence with 25% down payment. My budget is about 650k. Rest 75% will be financed via conventional loan. My goal is to buy and hold with the intent of building long term wealth. I am not much worried about the cash flow as long as I can at least break-even or have positive flow of couple hundred dollars every month. I prefer to invest locally. I like the idea of being able to see the property, neighborhood and manage the repairs/remodel myself. I have been exploring the areas of West Hills, Thousand Oaks, Gardena and Long Beach. I get tempted to invest in areas that have good schools since its easier to find good long term tenants. I already own a property in Hawthorne (primary residence) and Inglewood (investment). The appreciation has been good in these areas but of course it matters only when I actually sell. Any thoughts/recommendations on areas that have the potential for appreciation in coming years, are welcome. Thanks!!

[Aaron K.]

@Pooja Jindal I might be biased but I like the Inland Empire and some of those western IE cities like Upland, Rancho Cucamonga, and even Fontana which believe it or not is up and coming, the Chino/ Corona area can also be good for long term.  I wouldn't expect much cash flow here but if that isn't the primary concern rising prices, rising rents and prop 13 should treat you reasonably well.