Top Locations Where to Invest in the Southern California Real Estate Market Before the End of 2018 by Hamza Abdul-Samad July 19, 2018October 1, 2018 by Hamza Abdul-Samad July 19, 2018October 1, 2018 California has been home to many stable and profitable real estate markets over the years. The state’s real estate market is having another successful year thanks to high prices, a shortage in supply, no upcoming bubble, and fast purchases. The housing market in California is also expected to end 2018 on a strong note. This is particularly true for the Southern California real estate market, home to some of the best markets in the location such as Los Angeles, San Diego, Anaheim, Long Beach, and Santa Barbara. These cities are excellent choices for real estate investors interested in making money through both traditional and Airbnb investment properties. This blog will provide data from Mashvisor’s rental property calculator on the best cities in the Southern California real estate market and the best neighborhood in each city. Los Angeles City Level Data: Median Property Price: $831,560 Traditional Rental Income: $2,678 Cash on Cash Return / Cap Rate: 1.19% Airbnb Rental Income: $2,208 Cash on Cash Return / Cap Rate: 0.97% It’s hard to imagine the success of the Southern California real estate market without the lively City of Angels. Whether you opt for Airbnb or traditional investment properties, there’s never a shortage of tenants to find in Los Angeles. This is true for any location in Los Angeles, but the neighborhood that stands out in the city is Mid City West. What is starting to exist in LA, and in the Southern California real estate market, however, is a shortage of investment properties. Real estate investors, therefore, need effective tools, such as a heatmap of a rental property calculator, to scour for properties. Not too sure what we mean? Read this blog to learn more: “Finding Income Properties Using a Heatmap”! Best Neighborhood – Mid City West: Median Property Price: $1,926,809 Traditional Rental Income: $4,445 Cash on Cash Return / Cap Rate: 0.34% Airbnb Rental Income: $3,971 Cash on Cash Return / Cap Rate: 0.18% Occupancy Rate: 58% San Diego City Level Data: Median Property Price: $831,560 Traditional Rental Income: $2,678 Cash on Cash Return / Cap Rate: 1.19% Airbnb Rental Income: $2,208 Cash on Cash Return / Cap Rate: 0.97% San Diego has not only been one of the best locations within the Southern California real estate market; it has been one of the best places to invest in real estate throughout the entire US. In truth, the same can be said for many of the cities on this list, including the aforementioned Los Angeles. Nonetheless, San Diego provides real estate investors ample opportunities at making money. The city’s best rental market, in the Gaslamp Quarter neighborhood, highlights this with its profitable return on investment and rental income. Best Neighborhood – Gaslamp Quarter: Median Property Price: $706,022 Traditional Rental Income: $3,265 Cash on Cash Return / Cap Rate: 2.64% Airbnb Rental Income: $3,354 Cash on Cash Return / Cap Rate: 1.88% Occupancy Rate: 62% Anaheim City Level Data: Median Property Price: $588,186 Traditional Rental Income: $2,650 Cash on Cash Return / Cap Rate: 1.68% Airbnb Rental Income: $3,503 Cash on Cash Return / Cap Rate: 3.46% Anaheim, like the other areas in the Southern California real estate market, is a location full of profitable real estate investing opportunities. What sets the real estate market in Anaheim apart from its Southern California real estate market counterparts, however, is its affordability (want to know the most affordable cities in the US real estate market? Read this: “Top 7 Cheapest Cities for Buy-and-Hold Investment Properties”). The median investment property price in the city is around $580,000, which is a godsend in any housing market in California. While both Airbnb and traditional rental strategies work out fine on paper, Airbnb investments are prohibited in the city. Anaheim’s most profitable neighborhood is Southwest Anaheim. Best Neighborhood – Southwest Anaheim: Median Property Price: $586,058 Traditional Rental Income: $2,535 Cash on Cash Return / Cap Rate: 1.85% Airbnb Rental Income: $5,612 Cash on Cash Return / Cap Rate: 6.27% Airbnb Occupancy Rate: 70% Long Beach City Level Data: Median Property Price: $827,550 Traditional Rental Income: $3,052 Cash on Cash Return / Cap Rate: 1.12% Airbnb Rental Income: $2,360 Cash on Cash Return / Cap Rate: 0.96% Long Beach is another one of the best places to invest in real estate in the Southern California real estate market. The city is similar to both Los Angeles and San Diego in virtually every aspect. All three markets have a median property price ranging in the $800ks and high Airbnb and traditional rental income medians. Long Beach’s best neighborhood, Alamitos Beach, avoids this standard by clearly favoring traditional investment properties. Best Neighborhood – Alamitos Beach: Median Property Price: $859,754 Traditional Rental Income: $3,273 Cash on Cash Return / Cap Rate: 0.75% Airbnb Rental Income: $1,961 Cash on Cash Return / Cap Rate: 0.75% Airbnb Occupancy Rate: 60% Santa Barbara City Level Data: Median Property Price: $1,527,675 Traditional Rental Income: $4,269 Cash on Cash Return / Cap Rate: 1.08% Airbnb Rental Income: $4,733 Cash on Cash Return / Cap Rate: 1.74% Last, but definitely not least, of the best places to invest in the Southern California real estate market is Santa Barbara. Santa Barbara is by far the most expensive of the cities in the Southern California real estate market, but with an obvious justification; it is the rental market with the highest rental income. The real estate market in Santa Barbara’s best neighborhood, Hope, has below average median property prices for markets in the city, but still retains very high rental income. Best Neighborhood – Hope: Median Property Price: $1,116,643 Traditional Rental Income: $3,999 Cash on Cash Return / Cap Rate: 2.51% Airbnb Rental Income: $4,125 Cash on Cash Return / Cap Rate: 2.77% Airbnb Occupancy Rate: 47% Conclusion The Southern California real estate market is one of the best in the US. The markets are pricey compared to the average US housing market, but they generate above-average returns. Want to read more about California’s real estate market? Read this: “California Is Emerging as the Best Place to Invest in Real Estate in the Coming Years”! Want to begin looking for a Southern California real estate investment? Click here to start your search with Mashvisor! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Anaheim CALong Beach CALos Angeles CASan Diego CASanta Barbara CA 0 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post What’s the Deal with the Cash on Cash Return Calculator in Real Estate Investing? Next Post Real Estate Investing: The Best Places to Own a Beach House Related Posts 10 Cool Buyer’s Markets and 10 Hot Seller’s Markets in 2020 Phoenix Real Estate Market 2018: A Good Place to Invest? Should You Invest in Airbnb Gatlinburg in 2020? Here Are the 3 Best Places to Buy a Vacation Home in Nevada Best places to buy vacation rental property Should You Buy Real Estate Investment Property in the Chicago Real Estate Market? What’s the Deal with Airbnb Joshua Tree? Where to Look for Cleveland Houses for Sale to Invest In Colorado Housing Market 2020: Interview with Real Estate Agent Joe Mivshek Dallas Real Estate Market 2020: Why and Where to Invest All You Need to Know About San Antonio Airbnb Laws Top Philadelphia Real Estate Market Trends for This Year Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment.