How is Fresno real estate, mainly for investment?

For discussion purpose, any one knows about Fresno real estate, good, bad or Ugly…?

I tried to look various cities. Looks like Fresno has good high cash flow, like 8 caps or 10 caps, better than many bay area cities. IMO, Fresno seems to better choice than going out of state like Florida.

BTW: I am not going to buy there, this thread is for discussion purpose only !

The only people I know from Fresno go to Stockton for vacation. …Tells me all I need to know

1 Like

I see prices are affordable at Fresno, easy to buy cash offer, high cap rate such as 8 to 10. Do we know any pitfalls? Seems to be good place for growth.

Agrarian economy. …No BA near by…Ag is volatile…And farmers pay little…Fresno is the armpit of California. .lowest rents compared to almost anywhere in the country…Cap rates are high but so are exictions…Stockton is a much better bet.Sac better still…

1 Like

Just throwing some thought process.

Stockton vs Fresno, what is the average $/sqft difference? IMO, Stockton is higher priced than Fresno, similarly cap rates are less than Fresno.

Higher prices mean higher desirability. .plus Stockton is 1.5 hr away Fresno maybe 3-4hrs…Actually I have never been there…lol Never been to Bako either…still own 2% a 40 acre land deal from hell in Bako…I haven’t seen hope in the valley for 50 years…I do have new friends that are retiring here in Tahoe from Fresno, I will inquire. .However I know they are very happy to leave…It is afterall one of the poorest counites in the country, with an economy more akin to Mexico than San Francisco. …In fact Mexico has a lower unemployment rate and better prospects.
http://www.bestplaces.net/economy/city/california/fresno

Quote from the link…Fresno is not a place I ever plan visiting…Here is one persons point of view.

"moved to Fresno back in 2005 and lived there for a year and a half before I could no longer stand it anymore.

The area initially seemed very nice and pretty and I was looking forward to living there and having that experience. However, that lasted all but three days. My car was broken into and I was robbed. Wonderful Fresno welcome.

As if that wasn’t bad enough, two weeks later I got my first job there. That’s when my eyes were opened as to what to expect and what I’d deal with in the area. The childcare facility that hired me turned out to be a nightmare. The first location they sent me was literally down the street from where I worked. I seriously lasted until my lunch break on my very first day when I was called upfront to the office by management. There I was greeted with hostility and interrogation. One of the girls felt threatened by the fact that I had been placed as her aide and would take over her room when she learned my experience and credentials…and I was targeted because I was the only white employee and I wad new. Anyhow, she made up all these stories and lies about me saying that I trashed management, they didn’t know what they were doing, I was taking over etc etc. Needless to say I was transferred to location #2

Location #2 was smack dab in the middle of THE ghetto. Again, the only white employee. They treated me horribly, bullied me and constantly made racial slurs against me. Even had the children call me names in Spanish and would laugh about it. One co worker whose Nephew was a child in the center threatened me and had me shunned because an Asian child bit her Nephew while in my care and she accused me of letting the Asian kid bite her Nephew because I was a cracker and favored the Asian kids over the Mexcican ones. One co worker threatened me by telling me that I better know my place because her boyfriend was a Bulldog gang member and had just been released from prison for murder.

The parents were somewhat nice to me UNTIL they found out I was from Oklahoma. Then they truly made my life a living hell. I was accused of being a racist just because I was from OK…parents began filing complaints saying they didn’t want me there any longer and came up with allegations like I wouldn’t let their chikd eat or go to the bathroom etc etc. One day the black manager made me wear another employees ID tag (a 350lb black guy) and had me introduce myself as “Tyrone” so they could have their laughs and humiliate me. I stuck it out for a month and remained strong as long as I could.

My entire experience in Fresno was like that. It was horrible. I seemed to be a minority there, the crime rate wad very high, everything was extremely expensive and the standard of living is subpar. It’s full of racism, ghettos and an overpriced quality of life.

Tellitstr8 A.

. You are on point. My job only wanted to have availability to be back in California in the Northern part instead of Southern. It seems we have been going through the same changes. Well! This place is trashy and you will think you are in a third world country. Trash everywhere, disrespectful, rude people, and slum landlords who don’t update their property. The apartments are infested with roaches and alley cats taken over apartment complexes. And they have the audacity to say Fresno is known for this when you complain because they want you to accept it. No one stands up for anything, they accept because they like living in trash. It’s so bad, my coworkers don’t live in Fresno. They live on the outskirts and will commute that almost 2 hour drive every day just not to live there. Hopefully I can get to Southern part, because out here, the city doesn’t care about the quality of life for their residents.

1 Like

Plenty of bad areas in Stockton and Sac…In fact my units in South Sac are in a rough neighborhood. .But Fresno is the lowest of the low. …Just don’t need high caps that bad.

Currently I am not sure but Fresno often has the lowest rents in the country. .To me that means it is the least most desirable place to live in the whole United States…enough said…

Should be ok, Jil is a Hmong.

You mean like in Ford Torino?..lol

I’ve only driven through Fresno. Like Elt1 said, economy is all ag. I’d imagine you would end up with a lot of headaches on a rental there…evictions, late rent.

Have you researched Merced? Perhaps more upside there with the new University of CA. Although UCR hasn’t exactly made Riverside a great place to live.

In our office, this guy’s brother in law lives in Visalia. He has made tons of money flipping houses in the hood. Enough to have some beach properties in Panama.

There’s another poster here, Tom from Vallejo, that can testify to the way of living of this area. The wind brings all the smells from the bay area, the manure makes the environment horrible. My boy developed some kind of allergies that impair his life now and then. Jobs are very scarce, and you have to travel a lot from home to any job.

Agriculture is predominant, the cow industry too. Lemore is a good place to buy for renting, lots of army personnel from the military base living their. Going down to Porterville, you can visit the Sequoia park, amazing!

I guess you need to know the area to invest.

But things will change when HSR (which many laugh at this time) comes to reality, the prices may spike. As planned, HSR takes 1 hr 20 min to reach SF.

They started building lot of bridges, at least 5 bridges, and new stations at Fresno. This project goes in few years between 2025 and 2030.

If we think long term, we may have 10 years with 8% to 10% cap and then good growth is very likely.

In addition, 2 to 4 years, we may get into correction (if I speculate) and right time to get in Fresno ! Fresno is lower now than Stockton.

As long as you’re lucky enough not being robbed while visiting there or worse get sued or house being used for illegal activities.

First, I am not talking about SFH, but talking about apartment complex with full time manager employed with security gate etc.

I see 35 room apartment complexes are priced between 1.6M to 2M level with $225000 yearly revenue. Leaving expenses $75000 for all expenses, we stand to get net income $150000/year. (BTW: I am not comparing stock returns or REITs here).

Regarding Crime rates

Oakland 1 out of 100
Stockton 4 out of 100
Fresno 7 out of 100
Sacramento 8 out of 100
Hayward 15 out of 100
salinas 15 out of 100
Cupertino 45 out of 100

https://www.neighborhoodscout.com/ca/oakland/crime
https://www.neighborhoodscout.com/ca/stockton/crime
https://www.neighborhoodscout.com/ca/fresno/crime
https://www.neighborhoodscout.com/ca/sacramento/crime
https://www.neighborhoodscout.com/ca/hayward/crime
https://www.neighborhoodscout.com/ca/salinas/crime
https://www.neighborhoodscout.com/ca/cupertino/crime

Comparing this, we will have Fresno in the same standard of Oakland, Stockton and Sacramento.

Fresno is a long shot…Why sit down there for 20 years hoping for the Jerry Brown choo choo train…Fresno is the worst place to pick for BA commuters…The whole idea of a commute is to go home some place nice…Not a shithole like Fresno. .What about a train to Tahoe, Napa, Carmel. …now those areas are where people want to live…Why not just build out Mt House,Tracy, Patterson. .hell of lot closer than Fresno.
Go down spend a week and report back…While there go to Yosemite, Huntington lake, Kings Canyon near Fresno, but far enough away

1 Like

I have friends in Fresno and visit ~twice a year. The South-West is cheap, the North-East (Clovis) is more expensive. Many subdivisions in Clovis with 2000-3500 sqft tract homes, all built after 2000. They were 350k at the bottom, 650k now?

I was looking around 2011 at buying SFR in the South (less desirable) for $60k - $90k… they would rent now for $1200? I was also looking at buying a multi-family in the Southwest, 12 townhouses in 4 buildings… total $600k to buy, $85k gross annual income.

I did not do it, mostly because of the distance. It’s 150 miles from Santa Cruz to Fresno… 2.5 hours. I do not trust property managers any more.

2 Likes

There are mixed opinions on property manager. Why is the property manager not trustworthy in this case?

I was thinking of doing propert management when I retire.

Just as good deals in Tahoe…As we get older who wants to drive 3 hrs to a place like Fresno…4 hrs from Tahoe…cant image driving H5 in the winter fog…nightmare.

1 Like

Good property manager is hard to find.

1 Like

I know a great property manager in Tahoe. .I get advice but even though he is a great friend I would rather do the work myself…Dont trust other people with your money…
I plan only on buying within one hour from my house…Here is what I see outside my window and from driving around to my rentals…priceless view…takes your mind off cap rates…lol
http://www.summitpost.org/mount-tallac/150430