The Best Places to Buy Real Estate in California as a Property Investor
March 15, 2022
California’s wide variety of locations that are appealing for renters makes it a solid-state to seek out a rental property in, whether you’re new to the rental property real estate market, or a hardened veteran. Plentiful high-paying jobs, access to culturally hip cities, and other major attractions have kept the state able to attract new renters year after year after year. However, knowing which specific locales are currently hip and primed for profit in California can be difficult due to how quickly the landscape in the state changes. Thankfully, we’re here to provide you with the best places to buy real estate in California as a property investor:
Median Property Price: $847,000
There’s an average price of $559 per sq. footage in this beautiful California locale, making it one of the most affordable places in the state to rent traditional rental properties. Median property prices are calculated at $847,000, and bring in a typical monthly rental income of $4,162 (scoring you an impressive 4.17% traditional cash on cash return)! If you’re looking for a less competitive, but still highly profitable place to invest in rental properties within the Golden State, this is an ideal spot.
Median Property Price: $175,204
If you want to get into real estate investment with less cash-on-hand, but want a similar aesthetic and communal appeal, Taft is a solid choice. You’ll be able to invest with less capital thanks to the average price per square foot is only $112! Your monthly traditional rental income will be closer to $2,535, but the cash on cash return ratio remains at a whopping 4.17%. For first-time investors, this is the way to go when looking for investment properties in California.
Cathedral City, California
Median Property Price: $445,122
Cathedral City has become a growing, popular city over the last few decades. Thankfully, it’s also a fairly affordable place to invest in rental properties, with the average square footage cost coming in at $234. Thanks to the smaller size of the city, the expected monthly traditional rental income amount of $2,533 can prove comfortable to live on, especially if this is just one of your rental investment properties. Once again, the cash on cash ratio remains at a cool 4.17%.
Median Property Price: $323,971
Quincy is one of the quaintest locales for middle-class families in California to live in. If you’re looking to invest in a rental property market that will cater to working families, and are looking to spend less, the location’s benefits and average $206 per sq. feet price tag will prove highly appealing. You’ll need to invest in a few properties ideally, as the average monthly traditional rental income is only $1,877, but with some smart business savvy, you’ll be bringing in a healthy income (which will be supported by the location’s 4.37% cash on cash return). However, with all the profit you’ll be bringing in, you should pay extra close attention to your tax responsibilities.
Median Property Price: $484,200
Bishop has gained a reputation as an up-and-coming locale, making it a competitive, but worthwhile real estate market to dive into. The $242 per sq. feet price tag is fairly low when you consider the much higher monthly traditional rental income of $4,065 you’re likely to bring in. Add to this the rather high 4.46% cash on cash return ratio, and you’ll see why the charming California location has made it onto this list. The views, beautiful natural reserves, and culture of the locale will help finalize your draw to Bishop, so be sure to take it out.
Citrus Heights, California
Median Property Price: $322,467
The ridiculously high cash on cash return ratio of 4.64%, mixed with the reasonable $248 per sq. feet price tag is what truly sells rental property investors on Citrus Heights. Add to this the growing demand to move to Citrus Heights, and the properties there become that much more attractive. However, this becomes another key area where investing in multiple properties is recommended, as the monthly traditional rental income for most properties comes out to around $1,985. With how much culture and entertainment you’ll have access to while investing in Citrus Heights, however, your larger-scale real-estate investment via fractional ownership will be well worth it.
Your Next Amazing Investment Opportunity is Here
While investing big in rental properties can be stressful, these locations are nearly certain to bring you a healthy, life-changing amount of profit. Finding the perfect lender, securing your plan of action for drawing in renters, and getting ready for your new life of luxury is key in making this venture a resounding success. After all, California has remained an ideal state for investing in the rental property for many years for a reason.
Similarly, read these related posts: