Oakland, Fresno, or Stockton Investment? BRRR?

[Johnny Hoang]

Hi Everyone,

I'm looking for my first investment property but I'm not sure which area would make more sense to me. I currently have about 10-15k to spend so the pricepoint im trying to remain in will be 200-350k. I want to invest somewhere close to the colleges(Fresno State / University of Pacific). I currently have two properties I've rented and am subbletting via AirBNB. My initial plan was to just cash flow so I started doing airbnb by renting properties and just using airbnb as a platform for cash flowing. I wasn't ready to dump all my money into a down payment just yet, and at that time, my initial goal was just to cash flow. So the airbnb subletting just worked. I am now wanting and ready to take the leap to jump into owning porperties. Im comparing these three places for rental. I want to do the BRRR strategy. Just wanted to see if anyone could answer couple questions down below about their investments / experiences in these areas:

1. How much did you buy the property for?

2. How much down did you have to put and what type of loan?

3. Vacancy rate?

4. Turnover rate?

5. Monthly Cash flow?

6. Appretiation?

7. Short term rentals in these area, bad, good(Airbnb)?

8. What type of tennants are you seeing?

Plus any additional comments.

[Jason Monroe]

Hi Johnny,

In large part I suspect that if you tried to buy off the MLS you might be priced out of Oakland. Try to use the marketplace to see if there are any wholesalers in the area or if you can partner with someone in Oakland.

I went down to Fresno it's a special place. I would recommend Clovis as the schools are a LOT better according to people that have lived there. Market corrections LINGER for a LONG time in Fresno. You'll need to walk every property since it's very diverse. By the university it's not so bad but you have student housing problems and then there are industrial sections that are pretty run down.

Stockton might be a win for you as you can purchase for not so much and there are a number of articles here on how to buy in Stockton so that you don't have a large number of headaches.

You might want to ask someone to share a PDF of their BRR calculation biggerpockets.com/calc if you can connect with a pro here that operates in that area.