Dear California Rental property Investors

[Suresh Kannan]

Dear BP Family,

I am looking for Cities in CA, to invest in rental properties, all the calculations I learnt from BP and elsewhere is not making sense in almost all the properties I have been searching(mls, realtor sent listings, etc) the ones that fit are either very old ones, 1900s etc.,

So, requesting your take on the Investments when you invest in properties that you own in CA?

What are you looking for? other than the Cashflow, caprate etc., Interms of when it was built etc.,? 

Do you own properties in Northern California? and If Yes, do you dont mind sharing the analysis before you bought it?

Thanks and appreciate the help.

[Aaron Mazzrillo]

Your real options are; become a better buyer (investor) or risk losing all your money buying overpriced dog crap properties in some far away place you wouldn't ever imaging wanting to visit with the exception of passing through on your way to someplace better. For example, I drove through St. Louis to get to Maine where I bought 20 fresh from the ocean lobsters. Had it not been for those delicious lobsters, I wouldn't of ever had the displeasure of having to drive through St. Louis.

So far this year, I bought 5 properties in SoCal that I kept as rentals. In the process, I captured more than $500K in equity. Just because a property is worth X, doesn't mean you pay X. Regardless of what business you are in, you won't ever making any money paying retail for inventory. 

Again, learn to be a better buyer.