Fresno, CA Advice

[Amir B.]

Hello BP Community,

I am interested in acquiring a quadplex in Fresno. I have been told by a REA from Folsom about the potential growth for positive cash flow. Not sure if the REA is leading me down a dark alley. I would appreciate some feedback from local investors in the area.

Thank you. 

[Garrett M.]

Hi @Amir B., like most metropolitan areas, each neighborhood in Fresno/Clovis is unique.  I am initially skeptical that an REA in Folsom has the particular knowledge relating to these unique neighborhoods, but, even assuming he knows the market, please be aware of the following. 

Typically, the boundaries for "A Class" properties in Fresno are Shaw to the south, Blackstone to the west, Copper to the north, and Fowler to the east. Within those four boundaries, you are looking at prime North Fresno/Clovis real estate with some of the best schools in the state, virtually no crime, and newer homes occupied by professionals and upper middle class/upper class families.

East of Fowler is not dense enough for real estate investment and is rural territory.  West of Blackstone can be fine, but is more B class; similar with northeast of Shaw.  South of Shaw can get hairy pretty quickly.  The Tower District, which is Fresno's nighttime hot spot is revitalizing, and you can consider that area a B area.  Mostly anything south of Shaw, west of the 41 or south of the 168 are either Class C or true war zones.

If you know this going in, you can better prepare yourself for discussions with your REA.  I hope this helps.