It should come as no surprise that investing in the California real estate market this year is not cheap!
Housing affordability has fallen again this year, especially in the East Bay real estate market. We are seeing interest rates on the rise and home prices continue to rise. With the low inventory and abundance of buyers, California real estate is a seller’s market this year. But with this said, for buyers looking to invest in the Bay Area, there may be some profitable real estate opportunities you can capitalize on.
Expect multiple offers on a house if you are selling, especially if it is located in a nice neighborhood and is in a good shape. For property investors looking to buy in California real estate, including the East Bay, we recommend to invest long term properties because the traditional real estate strategy makes more sense right now. Interest rates are still relatively low but are expected to go up, so don’t expect to find a bargain.
Homeowners and real estate investors who bought residential investments in California real estate years ago are cashing in right now due to the very high rents and equity gains on their real estate investments. Finally, let’s not discount flipping homes – a very lucrative business venture indeed! However, we don’t recommend it to the novice investor; it is too risky to jump headfirst in fix-and-flips if you don’t have practical real estate experience.
Use Mashvisor Analytical Tools to Find The Best Real Estate Investments
With our property finder tool, heat map analysis, and Mashvisor’s rental property calculator, investors and real estate agents have the best tools to decipher the profitable real estate investment from the bad, respective to real-time market trends and locations! You won’t have to worry about keeping up with market trends across the country; Mashvisor does this for you. All you have to do is filter your preferences and leave the number crunching to us to help you find the next best investments to grow your real estate returns and long term business in California real estate and beyond.
Top Rental Properties in the East Bay for California Real Estate Investing
Without further ado, here are the top areas to invest in California real estate in the East Bay. According to Mashvisor’s comparative real estate market analysis, the best places to buy an investment property in the East Bay, California real estate are as follows: Alameda, Oakland, Berkeley, Albany, Lafayette, Walnut Creek, Concord, San Leandro, and Hayward.
Related: California Is Emerging as the Best Place to Invest in Real Estate in the Coming Years
Alameda, California
- Median House Price: $788,167
- Monthly Airbnb Rental Income: $4,628
- Monthly Traditional Rental Income: $2,881
- Airbnb Cash on Cash Return: 2.27%
- Traditional Cash on Cash Return: 0.78%
- Airbnb Cap Rate: 2.27%
- Traditional Cap Rate: 0.78%
- Average Occupancy: 66.88%
Shafter, Oakland
- Median House Price: $244,345
- Monthly Airbnb Rental Income: $4,307
- Monthly Traditional Rental Income: $3,680
- Airbnb Cash on Cash Return: 9.74%
- Traditional Cash on Cash Return: 9.61%
- Airbnb Cap Rate: 9.74%
- Traditional Cap Rate: 9.61%
- Average Occupancy: 72.04%
Berkeley, California
- Median House Price: $979,571
- Monthly Airbnb Rental Income: $4,078
- Monthly Traditional Rental Income: $3,346
- Airbnb Cash on Cash Return: 1.85%
- Traditional Cash on Cash Return: 1.11%
- Airbnb Cap Rate: 1.85%
- Traditional Cap Rate: 1.11%
- Average Occupancy: 65.08%
Thousand Oaks, Albany
- Median House Price: $849,000
- Monthly Airbnb Rental Income: $4,537
- Monthly Traditional Rental Income: $4,180
- Airbnb Cash on Cash Return: 2.47%
- Traditional Cash on Cash Return: 2.24%
- Airbnb Cap Rate: 2.47%
- Traditional Cap Rate: 2.24%
- Average Occupancy: 65.15%
Diablo Oaks, Lafayette
- Median House Price: $788,167
- Monthly Airbnb Rental Income: –
- Monthly Traditional Rental Income: $2,820
- Airbnb Cash on Cash Return: –
- Traditional Cash on Cash Return: 1.27%
- Airbnb Cap Rate: –
- Traditional Cap Rate: 1.27%
- Average Occupancy: 57.86%
Woodlands, Walnut Creek
- Median House Price: $786,424
- Monthly Airbnb Rental Income: –
- Monthly Traditional Rental Income: $3,504
- Airbnb Cash on Cash Return: –
- Traditional Cash on Cash Return: 2.06%
- Airbnb Cap Rate: –
- Traditional Cap Rate: 2.06%
Concord, California
- Median House Price: $543,611
- Monthly Airbnb Rental Income: $2,609
- Monthly Traditional Rental Income: $2,155
- Airbnb Cash on Cash Return: 1.48%
- Traditional Cash on Cash Return: 1.04%
- Airbnb Cap Rate: 1.48%
- Traditional Cap Rate: 1.04%
- Average Occupancy: 52.82%
Mission Bay Mobile Home Park, San Leandro
- Median House Price: $691,333
- Monthly Airbnb Rental Income: $3,605
- Monthly Traditional Rental Income: $3,550
- Airbnb Cash on Cash Return: 2.31%
- Traditional Cash on Cash Return: 2.83%
- Airbnb Cap Rate: 2.31%
- Traditional Cap Rate: 2.83%
- Average Occupancy: 68.00%
Hayward, California
- Median House Price: $722,605
- Monthly Airbnb Rental Income: $3,617
- Monthly Traditional Rental Income: $2,350
- Airbnb Cash on Cash Return: 1.9%
- Traditional Cash on Cash Return: 0.68%
- Airbnb Cap Rate: 1.9%
- Traditional Cap Rate: 0.68%
- Average Occupancy: 67.40%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
The Bottom Line
The best real estate investments are established on the right due diligence and analytical research. Make sure the right real estate investment is located in a favorable real estate market that is projected to appreciate in value over the years. Still, be very smart on which real estate strategy to choose if you want to invest in the California real estate market this year; depending on the area or city of choice, it might be better to invest in a long term real estate strategy than say, short term. We are not saying that buying a short term investment in California real estate is a bad idea, but given the current market trends, it just may not be the optimal strategy right now. With that said, this all boils down to the location and the area you want to invest in.
Wherever you choose to buy an investment property in California, we’ll help you find the best. Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!