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Location: San Diego, CA
Purchase Price: $380,000
Rehab Budget: $235,000
Location:San Marcos, CA
Purchase Price: $303,000
Rehab Budget: $15,000
California Real Estate Investing: A City To Keep On Your “Watch” List
As California’s population continues to track upwards, its diverse portfolio of real estate markets possesses some of the nation’s most promising return on investment options for individuals in the fix and flip sector. A well-researched and strategic investment in California real estate can net you a quick and healthy profit. If fast, efficient access to funding options is impeding your path to breaking into the California market, you can get your fix-and-flip efforts off the ground right now with flexible financing from Alpha Funding Partners.
Top New Construction Locations in CA
Being one of the most sought-after states to both reside in and visit, the California housing market seems to always be on the top of everyone’s wish list—regardless of the substantial cost of living. While the Golden State has something to offer both long- and short-term investment strategies, getting your foot in the door is often easier said than done. With that being said, don’t be dissuaded by the average listing price or living costs. There are numerous areas where you can make cost-effective real estate investments and set yourself up for a healthy, sustainable revenue stream—the secret is to focus your efforts away from the major urban centers such as San Francisco and Los Angeles. No matter what type of property you’re planning on building, California has plenty to offer those looking to utilize a new construction loan to build your dream home. Here’s a closer look at some of the top spots in California where Alpha Funding Partners can help you get the funding you need for a new construction loan in a fraction of the time as conventional lenders.
Situated in Trinity County, approximately 45 minutes from Redding, Douglas City is typically overlooked by real estate seekers; however, it has rapidly evolved into a prime area to purchase both investment property and new home plots in the entire state. The cost-of-living index is an impressive 89.3, coming in considerably under both the national and statewide median mark. Douglas City also boasts a robust local economy, with job growth trending upwards at a rate of 1.8% annually. There are a number of nearby outdoor attractions, including Whiskeytown National Recreation Area and Shasta Lake—both sure to draw a steady stream of tourists looking for vacation rentals. A new construction loan is an ideal method to finance the development of a rental property that can earn you a reliable source of passive income for years to come.
Yuba City tips the scales as the 21st biggest metro area in California and functions as the county seat of Sutter County. The city is ideally located in close proximity to Sacramento, Folsom Lake State Recreation Area and Lake Berryessa, which makes it the perfect place to either build a new personal residence or establish a rental property. Although the cost of living is somewhat high at 112.5, the average cash-on-cash profit margin of a rental property is 3.97% and the occupancy rate is well over 80%–promising states for those planning to build and lease.
If you need another option on where to utilize a new construction loan in the general Sacramento area, Elk Grove has tons of potential. The city is the second largest in Sacramento County, and has been the most rapidly growing locale in the entire country for a number of years. Elk Grove has the biggest school district in the Northern California region which boosts the local economy. While the cost of living is also high in Elk Grove, the return on investment on a rental property more than compensates when you crunch the numbers. With a cash-on-cash return of over 3% and an occupancy rate hovering in the high 80th percentile, Elk Grove is definitely one of the best fits for a new construction loan.
If building in the pricy abodes of Palm Springs, Los Angeles or San Diego doesn’t fit your budget, then Winchester is the ideal middle ground. Located in Riverside County, the city is a hidden gem for rental properties or new home builds in the Southern California region. The average cash-on-cash return for rental homes is 17.58% and there is a nearly 90% occupancy rate. The economy is also strong, and is showing no signs of slowing down in the near future—with the majority of new residents employed in the booming technology and engineering sectors looking for a convenient location without the overly expensive price of living in the nearby urban sprawls.