Where to invest out of silicon valley? - Posted by leony

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.

Where to invest out of silicon valley? - Posted by leony

Posted by leony on February 12, 2002 at 13:11:13:

I live in Silicon Valley. As you are all aware, the high prices and demand made good deals hard to come by. And I am afraid of a further deflating market.
So I want to invest out of the silicon valley. Have any of you had similar experience? Which area will be the best in terms of potential appreciation and lower price/rent ratio so that a nice positive cash flow can be generated?
How about Sacramento? Stockton? Reno?
I prefer the target area be within half a day’s drive. But if necessary, I am willing to travel further.
Any help is highly appreciated.

Re: Where to invest out of silicon valley? - Posted by Travis @ Santa Barbara

Posted by Travis @ Santa Barbara on February 12, 2002 at 13:55:20:

I have a similiar situation further down in Santa Barbara, CA. I am a noob (not sure if you are too) and would like anyone that is in the area to give me advice on my first deal. Prices are staggering here for any type of home, with new single wides going for 100+ in parks. Does anyone else have experience with a market like this? I think both me and leony could use some adive from anyone investing in the CA area.