Best Real Estate Market

I got email from an RE investor group about their “Real Wealth Network”. I always cringe at names like this. Anyway they say it’s free so I signed up (freebie!!).

These are “Today’s Best Real Estate Markets” according to them:

The last one on the list is… Belize!

Are they measuring it based on profit for flips, rental yield, projected appreciation? I think a lot of that depends on the investor’s goals.

It seems they are all based on income, with poor to no appreciation. Surprisingly Orlando is not on the list…

Anyway it boils down what business relationship they have with the local players. I would not touch Belize…

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Real estate is not hard. You follow the money. That means, employment centers or where people (with money or not) want to be without money considered. Bay Area. Bingo. Unless we lose a ton of jobs, we are pretty diversified though, I don’t see the Bay Area market ever falling long term. Too many people want to dance with the hot lady…

What do you consider long-term? Prices here have fallen before. If you’re horizon is 10+ years, then there’s never really a bad time to buy though.

Agree. But once in a while I want to peek out of our bubble to see how other places are doing… Another thing is, investing in Bay Area means super delayed gratification. Appreciation is nice but I can’t eat or buy groceries with appreciation. I need income. I must say I am often tempted by the income flow from cheapo flyover states…

Obviously, the chances of making money in cheaper areas is higher but can be more risky too. Those areas tend to be the hardest hit when the economy turns. One rule of thumb I go by is never buy a property that is so far away from you that you have to resort to use a management company or worse, travel there to take care of. One simply does not have the time and a management company, not only eats into your property, but will never ever do a half decent job of managing the property for you. They are getting their money already, so what do they care?

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If I were in real estate investment, I wouldn’t go where everybody goes. I would settle in a place that eventually will rebound sooner or later. Who here disregarded Vallejo, Stockton and so on?

Sure, if your work is elsewhere (and presumably at higher wages) and doable in terms of commute. With Vallejo again, the city filed for bankruptcy remember? And Stockton is not known to be such a hot town (my buddy grew up there).

Contrary for contrary sake is not a wise approach.

Vallejo has good growth potential because it is part of the Bay Area. Only problem is that people need to cross 2 bridges to get to SF, but there are some people commuting in from Sacramento so compare to that Vallejo is super attractive.

Stockton is definitely out of luck because it is too far away…

Stockton is closer to South Bay than Vallejo. There is also a growing tech cluster in Dublin and Pleasanton. Stockton is pretty close.

Not at all. From Vallejo you take 880 or 680 straight down and it’s a 70 mile drive to San Jose.

From Stockton you will need to go hwy 5 then 580 then 680 and that’s an 80 mile drive.

Also, San Francisco is the center of Bay Area not San Jose. So based on these 2 factors Vallejo definitely has much leverage over Stockton.

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Hear that, @manch!!!:slight_smile:

You know what, San Jose is letting me down with the rent control nonsense. Totally heart breaking. :cry:

If commuting to SF is what people are after then Richmond and Oakland make more sense than Vallejo.

Of course Vallejo is no comparison to Oakland. I don’t know about Richmond though. Too violent!

But we are comparing the worst amongst the bad here. I’d say Fresno is definitely the worst amongst them all!

This article doesn’t talk about IRR, just cap rates…The other problem with high caps…The higher the cap rate the harder it is to collect the rent…let alone higher costs to maintain.

I see a lot of money chasing multi fam in Stockton, especially around the Lincoln district. Cap is getting really compressed.

Also is Modesto considered higher end than stockton? It seems houses are more expensive there.

My Trump wannabe fellow owner in South Sac says BA money is willing to pay 4 caps in Sac…Thats a 50% boost from the the typical 6 cap rate…We will definitely sell to a 4 cap buyer…