Good Cities for Rentals Near Orange County, Ca

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Hi BP Friends,

What are some good cities and neighborhoods for rental properties in Southern California? I live in Orange County. From what I see, prices are way too high for the rents to cover my expenses. (Unless I'm wrong, feel free to correct me on that.)

Is there an area near Orange County that I could focus on? I figure since I cant buy in OC for rentals, I should concentrate on one area to buy homes so at least I'm not driving all around the state to check on my homes.

What do people do who live in high priced areas but still want rental properties?

Thanks!

[Aaron Mazzrillo]

Nope. No good deals anywhere in SoCal. You must buy out of state. Only then will you find cash flowing rentals. All the cash flowing properties here have been purchased a long time ago!!! ;)

I find it... perplexing is a good word, that a Southern California investor will look at cities thousands of miles away before even considering Fresno, Sacramento, Bakersfield, or any of the other dozens of central-ish CA markets. Hey, why not be the new king of Visalia?! 30% population increase since 2000. Unemployment sucks, but that is kind of the norm for most of California these days. (Disclaimer: I know nothing about that town, nor have I ever been there.)

I just did a (very quick) look at Sacramento on Redfin and found quite a few houses that are in line with the 1% rule so many investors on here like to use. I'm sure a savvy investor/marketer could team up with the yellow letter guy on BP and buy some discounted properties right here in gold ol' CA with a good targeted campaign to anyone of the above mentioned cities.

As far as affordable rentals in OC, you won't find them listed in the MLS if that is where you are looking. I mean, c'mon they make reality shows about that place. If you are focused on buying rentals in OC, you have to find sellers who are open to structuring terms which allow you to own the property and make it cash flow. I'd look in not-as-good areas of OC such as Garden Grove, Santa Ana, Westminster. You could go a little further north to Long Beach. Nothing wrong with good old Palmdale/Lancaster. I know a couple of good guys who've made a killing up there. I have a friend whose purchased 9 houses there this year alone. Cash flowing rentals are available. I have 2 in escrow now. If you don't find gold in the hole you dug, there are 2 options; go somewhere else and dig a new hole, or dig deeper in the one you're in.