Impossible to invest for cashflow in California? Maybe not...

[Bruno Tavares]

Hey there!

I've read quite a few things here and there and it seems that there's a consensus that California is terrible for cash flow investing. But I got caught in some interesting stuff.

Sure, Bay Area, LA, Sacramento have scary prices like 3 bedroom houses for $1M and rent at 3,000.00 (far from the basic 1%), but I looked over cities like Fresno - the fifth largest in California, with 500k+ habitants and a lot of good looking demographic and economics numbers - and I've found several properties in the 100 ~ 200k range with some close to %1 rental numbers.

• http://www.trulia.com/real_estate/Fresno-Californi...
• http://www.zillow.com/fresno-ca/
• http://www.city-data.com/city/Fresno-California.ht...

Fresno is just one city and California is a big state. It seems that there are indeed some hidden gems in areas different than Bay Area, LA & Sacramento. 

What you guys think? I'm counting in the awesome bigger pockets community to find some local and out-of-state opinions! Does it make sense or am I ignoring something crucial and getting it completely wrong?

[Account Closed]

Originally posted by @Bruno Tavares:

Fresno is just one city and California is a big state. It seems that there are indeed some hidden gems in areas different than Bay Area, LA & Sacramento. 

What you guys think? I'm counting in the awesome bigger pockets community to find some local and out-of-state opinions! Does it make sense or am I ignoring something crucial and getting it completely wrong?

 What is a hidden gem?  If that what your looking for you can dig in my back yard at $50 a shovel full and I guarantee you hidden gems.  LOL  Yes, you can get IMMEDIATE cash flow in CA.  But generally you are going to have to put some work or smarts in and a little risk to get it in places like LA and the Bay Area.  In other places of CA you are just trading appreciation for immediate cash flow.  IN the Bay Area you may be able to BANK on 9-11% appreciation.  Other parts of CA may only see 4-6% appreciation and that is why they are more likely to have immediate cash flow.  Now if you can make a good business guess on a CA area that will have an increase in it's typical appreciation rate then yes, you found a hidden gem.