California Real Estate Investing: Low Cash Flow, But Worth the Risk?

[@arthurgarcia1371]

Good insights, but you missed all the markets where a lot investors actually make money: Central Valley, inland empire, Bakersfield, Fresno, Sacramento, etc. I think you’d be surprised to see how many markets actually still cash flow inside CA. Instead of buying 1 800k, you could buy 3-4 in Fresno for example.

[@tahirisaid2693]

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future. Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.

[@georgestone0123]

Investors should be cautious about their exposure and be wary of new buys, especially during inflation. Such high yields in this recession is only possible under the supervision of a professional or trusted advisor.

[@georgestone0123]

I won't pretend to know everything, though. Her name is Angela Lynn Schilling, but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.

[@TinaMyles]

I stopped trying to predict market outcomes based on chart studying after 5 years of uncertainty. Not having a mentor caused me 5 years of pain. I learned to follow the market's direction and keep it simple with discipline.

[@brainharrington]

Belong manages a townhouse for us in Anaheim and we love it, refi'd it down to a 2.75 then moved out to a new primary residence, it's our first rental!

[@ddfelder2]

What do you like most about it? I’m interested in utilizing their services as well to do the same.

[@brainharrington]

@@ddfelder2 I like that you can finance repairs and maintenance simply out of the monthly payment and I like that they guarantee the rent shows up on the first each month

[@josephassili4123]

Awesome video! Could you do an analysis on FL markets including Orlando? You're the man Dave!

[@patelbv]

I am in LA/OC and it’s tough. For new people without a strong W2 and/or a huge cash down payment, an FHA loan into a 1-3 bedroom condo/townhome is the best you can do unless you can house hack in Santa Ana or south central. Just gotta get into anything in LA/OC/SD and that’s your equity builder for the next place. Exceptions are: Airbnb it to make it cash flow if the city allows it

[@AberrantArt]

Why didn't you mention the Landlord / Tenant laws??? 🤔

[@robm196]

Probably because it's to confusing la county has been under a covid moratorium for 3 year. It ridiculously because la county board of supervisor just keep extending moratorium.

[@free22]

They vary by region.

[@AberrantArt]

@@free22 specifically San Diego and San Francisco and LA since he was focused on those

[@free22]

@@AberrantArt To cover the different laws of each of those three regions would have required a much longer video. Or a different video altogether.

[@devsters]

THANK YOU for making a video on the economics in LA/SF.... I invest in Inglewood and always roll my eyes when I hear the 1% rule. Rents go up 5-7% per year (inflation aside) so it's all about what it's going to look like in year 5+.

[@youtubecarspottersguide1]

property taxes are protected by prop 13 . so the longer one holds a property more ahead you are, as other states you can be taxed on current market value or recessed every yr

[@Boxofdonuts]

good analysis. been investing in cali for 25 years. my strategy now for buying is large down payment + value add, rent high and cash flow, then flip in 5 years.

[@JohnCarrFitness]

He’s the best! Objective facts don’t lie.

[@scottc6946]

Best way to cash flow in California is live in the house for the first 10 years, then the rents will easily cover mortgage after that

[@husbandandwifeteamak]

Great video on California real estate investing!

[@kevinchu9696]

Great video. It’s so helpful. Can you talk about Las Vegas? Las Vegas rent to price ratio is also low. Property appreciation and average house income is much lower than the cities in California. What’s your opinion of investing in Las Vegas? Thank you!!

[@melissarousseau4174]

Please Do an analysis like this for Miami FL!!

[@JCC56]

Owning a rental is great when you find good tenants. Hopefully Cali governor doesn't impose another moratorium on rent, lots of landlords suffered great losses.

[@duneme]

Wife and I have 4-Rental Houses in Sacramento/Elk Grove! (Much less expensive than SF!)

[@duneme]

5:40 Rent to Price Ratio!

[@duneme]

Rent to Price Ratio: Month of Rent/Purchase Price Rule of Thumb is 1%! (I don’t see that here inCA!)

[@duneme]

Answers are in % and are quite often

[@AscDrew]

@@duneme that’s totally arbitrary and does Not take into account many factors such as Mortgage Principal reduction (equity gain), average Value Appreciation (additional equity gain), stable property taxes, historical Rent Rate Growth, all which equates into the Total Return of the properties. 1% rule is Way too short sighted, and Only really applicable to areas that don’t typically have much Value Growth.

[@beetlej2398]

The equity can shoot up fast in California. Bought my house for 350 in 2016 now it's over 750k

[@LordCruse]

Is it worth over 800 yet lol

[@beetlej2398]

@@LordCruse closer to 900

[@PhantomyreValentine]

This is fantastic. Could you please do a video on Washington state? i rarely hear any investor talk about that state.

[@shankarsridhar7907]

House hacking in California, does not equal to saving in rents. The whole point of house hacking is to be able to put a low very low down payment and your mortgage + expense is still less than what you’d pay for renting. This is definitely impossible for most properties (unless you get a steal deal) in California. Funny how they talk about cash flow which is supposed to include all maintenance and vacancies, but if you go by this definition, you will be definitely spending more than your rent for expenses. Only up side is, you are making a mortgage payment, so it’s not completely down the drain. But in terms of saving rents, nope.

[@LordCruse]

I’m doing it lol

[@ChuckNorris-Investor]

Great Content Dave Could you analyze Rental Property in the Honolulu Markets in the upcoming podcast. Much appreciated!

[@sammitpotade]

Please analysis Boston MA

[@reecerealtyco5622]

Can you do a similar video about Florida

[@bitcuriousmom3124]

Just found you. Love this info! Thank you! 🤗

[@galdamez874]

Have been investing in California...thanks for video. Very informative 👏 👌 🎉

[@Abby_cat47]

Sheeeeesh that’s expensive! My tenant pays 450$ for her 3 bedroom upper unit here in the Midwest!

[@AscDrew]

That’s abysmal, can’t make any real money on that, after expenses especially maintenance.

[@Lanainvestor]

what zip code ?

[@Lanainvestor]

shasta county, Ca is good!

[@vrodbr]

I feel like NYC is just as expensive if not more.

[@Odalisca738-d7d]

Agreed

[@Brooklyn94269]

It absolutely is

[@Brooklyn94269]

@Gold Tau I disagree

[@richoffks]

@Gold Tau blatant lie

[@characterchampions-compassion]

Rent control in the city of la is beyond horrendous. Its important to mention some of those laws because it makes it not worth investing if you don't want to lose incredible sums of money

[@Lanainvestor]

rent control!

[@free22]

Varies by region.

[@professionalaesthetics]

Too much talkie, not enough info per word spoken.

[@blainesnider9089]

Cali has terrible laws all for the renter none for the property owner.

[@stevennguyen2879]

I am in the market for a house in San Diego. The market has become hot again and bidding war is going on now. Houses sold for more than asking price.

[@Walina-gv9ph]

I can make any property in CA cash flow. It will appreciate in value. You can't make any property appreciate in Indianapolis and will probably hand back most of your cash flow in capex.

[@Odalisca738-d7d]

Sorry don’t really care about Ca.