Posted by Lor on February 12, 2002 at 18:58:03:
I started investing many years ago in outlying areas of Calif. because at the time I couldn’t afford a home in the Bay Area yet I wanted to own real estate. You need to do your own research. Start by accessing newspapers on-line for a city you might be interested in. Compare the rents to housing prices and you can get an idea of the cash flow. Contact real estate agents and find out what prices have been doing for the past 5 years, past year etc. An example is South Lake Tahoe. A single family home about 2 1/2 years ago went for 125K then last year the same house sold for 250K. More recently prices have fallen about 10%. You don’t want to get into a market that has already peaked. Check out all the counties in central Calif. and the Calif. foothills for good deals. Right now Minden, NV is appreciating. So is Amador County because it is within commuting distance of Sact’o high tech. You can buy houses in Lassen and Plumas counties for under 100K that won’t appreciate much but you can get positive cash flow and pay the houses off for retirement. Depends on what you want.