Southern California Investment Homes are BACK!!

By
Services for Real Estate Pros with Classic Property Management

   As many of you who read my blog know, the odds of getting your mortgage payment back in rent are ridiculously small in most cases.  In fact, for several years, it was almost laughable to hope for such a return...until now. 

   The Antelope Valley was one of the areas in southern California that was hit the hardest by foreclosures.  As a result of this unhappy reality, prices of homes here dropped like a rock.  Our market has become inundated with short sales, foreclosures, auctions, and every other type of Realtor's nightmare that you can conjure up.  There are homes that sold for over $250,000 just a few years ago that are now on the market for around $89,000.

   Sounds horrible right?  Not for the investors.

   The saying goes that every cloud has a silver lining.  In this scenario, the silver lining on the foreclosure cloud is the rental market and investment opportunities.  A side effect of the massive foreclosure rate is an increase in the number of renters.  Just because someone went through a foreclosure, that does not mean that they will no longer need a place to live.  All of these people who got their homes by utilizing some kind of sneaky loan program are now having to turn towards the rental market once again.  As a result, the massive surplus of rental homes in the area is beginning to shrink.  Rental home prices are going up, and vacancy rates are coming down!

   Here in the Antelope Valley, the market drop has made a tremendous impact on how investors are looking at the area.  For the first time in years, homes can be purchased and rented out for MORE than the owner will pay in insurance, property taxes, and mortgages combined!  Due to the fact that I work for a property management company, I have the ability to track rent prices as they rise and fall.  As a result, we as a company have been able to help several investors in their quest to find properties that are capable of producing a positive income each month.

   Just because the market has taken a downturn, that doesn't mean that all hope is lost!  Hope is always to be found if you look in the right places.  For those investors out there, take a look at the southern California real estate market.  You just might be surprised to find that there are amazing deals to be had and money to be made!

 

Classic Property Management...finding the silver lining in a cloudy market.  For more silver linings, feel free to check out our website by clicking on the Classic logo to the right!

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Rainer
7,664
Lisa Lambert
Asset Preservation - Bakersfield, CA
ESQ. (1031 Exchange Expert)

Absolutely!! This market is great for investors because properties are beginning to cash flow again.

Lisa

Apr 10, 2008 04:31 PM #1
Rainmaker
254,432
Robert Machado
HomePointe Property Management, CRMC - Sacramento, CA
CPM MPM - Property Manager and Property Management

This is happening all over California.  Time to look into buying some rentals.

Apr 10, 2008 05:19 PM #2
Rainer
70,737
Bill Nazur
Corona, CA
And a phenomenal buying opportunity that is being presented that will help solidify the market moving forward. You should post this one to localism as well if you havent already.
Apr 11, 2008 03:01 AM #3
Rainmaker
143,597
Michelle Pimentel
Empire Home Staging Solutions - Upland, CA
ASP, IAHSP Empire Home Staging
This is a great opportunity for investors.  The truth of the matter is that it is always an unfortunate situation to see people lose their home. However, it seems to be that for ones misfortune there is anothers fortune. So investors NOW is your time in So. California.  So many foreclosures to choose from and they are going to keep coming for some time.
Apr 11, 2008 03:45 PM #4
Rainer
36,886
Martin Rodriguez
Pacific Funding - Valencia, CA
Senior Loan Consultant

John,

RE Investments will continue to improve as lenders tighten guidelines.  Higher down payment and credit score requirements will provide a large barrier to entry for 1st time homebuyers which will keep rental prices climbing.  

As rent prices go up and property values go down, the opportunity for those who can afford to buy will be great.

Real Estate as an investment continues to be a solid component in any investers portfolio.  Get it while you can.

Martin

Apr 13, 2008 05:26 PM #5
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Jon Mitchell

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