California provides a consistently excellent location for those looking to get into the property investment game, or for those who’re looking to diversify their portfolios. With the right eye, you can easily find many different properties that are waiting for the right investor, and which can make you hard-to-believe profits year after year.
Half the trick to succeeding in the real estate game, however, is simply knowing where the best properties are located. To help you on your new journey, here are several of the best real estate markets in California for property investors (whether you’re a seasoned professional or brand new to the real estate marketplace):
Hawthorne
Traditional rental properties have been in a highly profitable territory in Hawthorne over the last decade. Nearly 75% of properties are being occupied by renters in this commerce heavy town, making it a great place to be a landlord (or to simply be invested in a piece of property that’s being rented out). The annual projected profit for the average renter in Hawthorne is an astounding $34,212. That’s right, if you find even an average property to buy up in Hawthorne, you’ll be able to live off of your profits in this town thanks to its reasonable cost of living. The fantastic cultural attractions in Hawthorne only make the deal that much sweeter for potential rental property investors.
Joshua Tree
Located in San Bernardino County, Joshua Tree has seen a massive population and economic period of growth in the last decade. Along with this growth, property value has shot up as well, with the median home value increasing a whopping 22.2% since 2018. Averaging more than 10% additional growth year after year, the property in this charming locale is set to continue growing for the foreseeable future. If you can get in on an attractive property in one of Joshua Tree’s growing neighborhoods, you’ll grab an investment property that will quickly become the star of your portfolio. The beautiful natural environments and locations that surround the location make it that much more impressive.
Arden-Arcade
Although not as heavily populated by renters as Hawthorne, the hipper Arden-Arcade area still has more than 50% of its properties occupied by renters. If you’re looking to invest in a property that’s a bit more affordable and accessible for first-time real estate investors, the cheaper property prices will prove attractive. The current median home value comes in around $371,500, which while not cheap, can be within your reach with the right loans. The fact that the property values are expected to increase 3.1% by the end of this year, and are likely to sustain their value increases in the following years, makes this eccentric Californian locale a great addition to any real estate portfolio.
Oakland
Being close to the Bay City area is incredibly beneficial in the real estate game. Given how much traffic, business, and tourists are constantly going through the surrounding area (not to mention the growing population of Oakland), you’ll be sure to find renters to fill your potential new rental investment property. While not as high as some other areas near the Bay City area, the annual yearly income for those who own rental investment properties in the area is just above $20,000. Explore opportunities with reputable real estate investment companies to make the most of this thriving market. Due to this, potential investors looking to jump into the Oakland market are better off snatching up multiple properties (as the cost of living in the area can become fairly high, especially with the current rate at which inflation is growing).
Sacramento
Another beautiful locale near the Bay City area, Sacramento is actually California’s capital, making it a key attraction for tourists and proud California natives alike. Thankfully, the real estate investment opportunities in Sacramento are incredibly appealing as well, as the median home value has increased by nearly 3% every year in recent years. The balanced market values of homes in the area make it an attractive place for first-time investors to seek out that dream investment property, so be sure to give a lot of thought as to whether Sacramento might be the best choice for you.
California is a Dream for Property Investors
Thanks to the wide variety of locations that are consistently profitable for property investors in California, it’s been a staple of successful real estate portfolios for many, many years. Even if you’ve never dipped your toe into the intimidating waters of real estate investing, California can prove welcoming. If you’ve been hungry for a convenient, surefire way to make major profits this year, investing in valuable rental property in an attractive California locale is a fantastic idea.
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