Every real estate investor desires to find the best place to invest in real estate, and the California housing market 2018 is one of those places. Why, you may ask? Well, the explanation is simple. This state is a desirable destination point for many travelers as well as investors for several reasons including: warm climate all year long and beautiful nature as well as a big variety of leisure activities offered at the different California vacation spots. California is seen as the best place to invest in real estate as you may invest in both types of rental strategies: Airbnb rentals and traditional rentals. As many travelers and tourists visit California, its market is a great opportunity to establish an Airbnb rental business. Moreover, due to all benefits of this state, many people consider living in California long term. Nevertheless, the California real estate market is quite big. Therefore, we will concentrate on the cities in the state qualified as the best places in California to invest. Before investigating the best places in California, we will first examine the California housing market 2018. Moreover, we will open some secrets of the real estate investing business and the process of finding the best neighborhoods in California. Interested? Keep on reading to find out about the best places in California to invest in real estate.
#1 California Housing Market 2018
In order for a real estate investor to be truly successful in the real estate investing business, he/she should review the current housing market. Typically, you check whether the real estate market that you are interested in is a seller’s market or a buyer’s market before investigating for the best places in California. In order to be a successful real estate investor, you should monitor the California housing market 2018. There are couples of reforms with regards to tax bills that are pending at the moment. It is possible that they have a quite significant impact on the market. Taxes in California real estate are already high, and after the reforms are accepted, there is a chance of them to increase even further. Consequently, a real estate investor who is planning on buying investment property now may leave the market in the future. Moreover, the real estate investor may expect that the period of living in a property before selling and getting tax reductions will increase. This has a direct effect on the number of homes on the market. Interested to learn more about the housing market in California? Make sure to read “California Housing Market 2018 Forecast – What’s the Deal?”.
First of all, we will assess the California real estate market. Let’s review the current state of the market: Is it buyer’s market or seller’s market? Well, it looks like it is a seller’s market that will not change to buyer’s market any time soon. The reason for that is a constant increase in prices as well as a shortage in the supply of real estate investing properties. However, what is the definition of a seller’s market? A seller’s market indicates that the current market favors the sellers as the demand for purchasing investment properties is higher than the supply. Therefore, the prices of an investment properties are expected to increase.
After a real estate investor has successfully explored the California real estate market, he/she should prepare for reviewing the best places in California to buy a rental property in 2018. To be more specific, he/she should explore the best cities for buying investment property. To provide you with the most precise information about the best place to invest in real estate, we will divide the best cities in California in two sections. Section number one includes the best places in California for traditional/ long term rentals. Section number two includes the best places in California for Airbnb rentals or California vacation spots. Curious to learn about a vacation homes in California, make sure to read “The 5 Best Places to Buy a Vacation Home in California in 2017”.
#2 The Best Places in California for Traditional Rentals
Traditional rentals are seen as one of the best real estate investment strategies. Sure enough, you can also succeed with long term rentals in California. In order to ease the decision making process, we have selected the top five cities in California for your next traditional investment property.
1. Edwards
- Median Property Price: $79,900
- Traditional Rental Income: $1,550
- Traditional Cash on Cash Return: 16.52%
- Traditional Cap Rate: 16.52%
2. Union
- Median Property Price: $123,000
- Traditional Rental Income: $2,264
- Traditional Cash on Cash Return: 14.06%
- Traditional Cap Rate: 14.06%
3. Cantua Creek
- Median Property Price: $85,000
- Traditional Rental Income: $1,330
- Traditional Cash on Cash Return: 12.84%
- Traditional Cap Rate: 12.84%
4. North Edwards
- Median Property Price: $99,995
- Traditional Rental Income: $1,404
- Traditional Cash on Cash Return: 9.51%
- Traditional Cap Rate: 9.51%
5. Big River
- Median Property Price: $94,500
- Traditional Rental Income: $1,483
- Traditional Cash on Cash Return: 8.99%
- Traditional Cap Rate: 8.99%
#3 The Best Places in California for Airbnb Rentals
Airbnb rentals are another great investment strategy. You have all the chances to make a fortune with the California vacation spots. In order to guide you, we have selected the top five cities in California for new short term investment.
1. Meyers
- Median Property Price: $399,000
- Airbnb Rental Income: $5,875
- Airbnb Cash on Cash Return: 14.43%
- Airbnb Cap Rate: 14.43%
- Airbnb Occupancy Rate: 36.75%
2. Orick
- Median Property Price: $137,000
- Airbnb Rental Income: $1,964
- Airbnb Cash on Cash Return: 10.86%
- Airbnb Cap Rate: 10.86%
- Airbnb Occupancy Rate: 41.71%
3. Napa
- Median Property Price: $702,000
- Airbnb Rental Income: $8,260
- Airbnb Cash on Cash Return: 8.62%
- Airbnb Cap Rate: 8.62%
- Airbnb Occupancy Rate: 56.77%
4. Twentynine Palms
- Median Property Price: $115,000
- Airbnb Rental Income: $1,457
- Airbnb Cash on Cash Return: 7.81%
- Airbnb Cap Rate: 7.81%
- Airbnb Occupancy Rate: 41.19%
5. Oakhurst
- Median Property Price: $314,950
- Airbnb Rental Income: $3,098
- Airbnb Cash on Cash Return: 7.44%
- Airbnb Cap Rate: 7.44%
- Airbnb Occupancy Rate: 40.71%
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#4 How to Make Sure You Select the Best Places in California when Buying Investment Property?
Conducting a research is number one priority when you are trying to find the best investment property or select the best neighborhoods in California. Make sure you conduct a real estate market analysis (comparative market analysis comparative market analysis ) as well as investment property analysis in order to succeed. Real estate market analysis and investment property analysis will guide you through the process of buying an investment property. No one says that conducting real estate market analysis is easy. However, once you have mastered how to do that and which real estate investment tools to use, you will find the process relatively stress-free. For instance, when you are curious about the best neighborhoods in California to invest in real estate, use Mashvisor’s investment property calculator to receive all the information you need. This tool will help you succeed as it also shows you the optimal rental strategy for your investment property. Interested in learning more about the investment property calculator? Make sure to read “Investment Property Calculator For Analyzing Real Estate Investments”.
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