Do you want to invest in real estate in California? If YES, here are 10 best cities in California with lots of opportunities to buy investment property.

In this article, we will be looking at key components that will be of great benefit to you if you want to buy investment property or any other type of property in California. You will be able to get adequate resources that will help you make an informed decision on the city in California you want to buy your investment property.

Important Statistics for California

California is a state that can boast of a GDP of $2.797 trillion (2017), GDP growth of 3.0 percent (2017), and GDP per capita of $71,209 (2017). California has a 13.3 percent (absolute) 19.0 percent (relative) of population below poverty line and an effective Labor force of 19,286,476 (December 2017) with an Unemployment rate of 4.2 percent (Jan. 2019).

  • Demographic Analysis

California is a state in the Pacific Region of the united states with Sacramento as the capital of the state. Interestingly, California is the most populous state in the United States of America with a population of approximately 39.6 million residents. The city can boast of having the third-largest landmass by area.

The Greater Los Angeles Area and the San Francisco Bay Area in California are the nation’s second and fifth most populous urban regions, with 18.7 million and 8.8 million residents respectively. Los Angeles is California’s most populous city, and the country’s second most populous, after New York City. California also has the nation’s most populous county, Los Angeles County, and its largest county by area, San Bernardino County.

The City and County of San Francisco is both the country’s second-most densely populated major city after New York City and the fifth-most densely populated county, behind only four of the five New York City boroughs. As a matter of fact, California is the 3rd largest state in the United States in area, after Alaska and Texas.

Some of the highest income counties in California are Marin County and San Francisco County, which both can boast of per capita personal incomes of over $100,000, and are 2 of the top 12 highest-income counties in the United States. As a matter of fact, some coastal cities include some of the wealthiest per-capita areas in the U.S., notably in the San Francisco Bay Area and the Greater Los Angeles Area.

Statistics show that in 2010, there were more than 663,000 millionaires in California, more than any other state in the nation. In 2010, California residents were ranked first among the states with the best average credit score of 754.

Understanding the Real Estate Market in California

Research shows that some of the most expensive and largest housing markets in the United States of America are in the state of California. As a matter of fact, there are a number of communities in California where average housing prices range between US$1 million to $2 million.

The Central Valley in northern California is the least expensive area, as is the Inland Empire in Southern California, though prices in these regions are still much more expensive than most other areas of the country, to the point that there are also communities in these areas where housing prices average around the $1 million mark. The agricultural central counties have some of the highest poverty rates in the state.

Please note that the shortage of housing and new construction units means property prices may rise in 2019. According to Zillow, the median home value in California is $547,900 ($318 price per Sq/Ft), an increase of 5.6 percent over the past year.

Zillow further predicts that California home values will rise 7.6 percent within the next year. As a matter of fact, this trend is expected to be seen across major cities and states across the US. Now, here are the 10 best cities you can choose from if you want to buy an investment property in California;

10 Best Cities in California to Buy Investment Property

  1. Bishop

Top on our list of the best cities cum town to buy investment property in California is Bishop. Interestingly loads of real estate moguls not just from the United States of America but also from across the globe are heading towards Bishop to invest in properties.

Here are some of the important statistics for Bishop

  • Median Property Price – $474,742
  • Price Per Sq/Ft – $212
  • Traditional Rental Income – $2,038
  • Price-to-Rent Ratio – 19
  • Walk Score – 86
  • Traditional Cap Rate – 4%
  1. Castaic

Another important destination to buy an investment property in California is Castaic. Research shows that the property market in this location is booming and you may want to visit to see things for yourself.

Here are some of the important statistics for Castaic

  • Median Property Price – $440,000
  • Price Per Sq/Ft – $399
  • Traditional Rental Income – $2,300
  • Price-to-Rent Ratio – 16
  • Walk Score – 51
  • Traditional Cap Rate – 3%
  1. Quincy

Quincy is yet another location where investment property business is booming in California and interestingly, investment properties in this location are affordable compared to other cities.

Here are some of the important statistics for Quincy

  • Median Property Price – $289,033
  • Price Per Sq/Ft – $170
  • Traditional Rental Income – $2,321
  • Price-to-Rent Ratio – 10
  • Walk Score – 56
  • Traditional Cap Rate – 3%
  1. Citrus Heights

Citrus Heights from available statistics sits 4th on our list of best cities cum locations to buy investment properties in California. Trust me, there are loads of factors that will pull you to this location if indeed you are interested in buying investment property in California.

Here are some of the important statistics for Citrus Heights

  • Median Property Price – $394,196
  • Price Per Sq/Ft – $232
  • Traditional Rental Income – $1,738
  • Price-to-Rent Ratio – 19
  • Walk Score – 48
  • Traditional Cap Rate – 2%
  1. Roseville

Another nice location to buy investment properties in California is Roseville. Although properties are not cheap in this location, but trust me you will get good returns on your investment (ROI) if you go all out to invest in properties in Roseville.

Here are some of the important statistics for Roseville

  • Median Property Price – $419,954
  • Price Per Sq/Ft – $215
  • Traditional Rental Income – $2,131
  • Price-to-Rent Ratio – 16
  • Walk Score – 36
  • Traditional Cap Rate – 2%
  1. West Sacramento

West Sacramento is yet another location where investment property business is booming in California and interestingly, investment properties in this location are affordable compared to other cities with same amenities.

Here are some of the important statistics for West Sacramento

  • Median Property Price – $368,825
  • Price Per Sq/Ft – $213
  • Airbnb Rental Income – $3,392
  • Occupancy Rate – 52%
  • Walk Score – 37
  • Airbnb Cap Rate – 5%
  1. Broadstone

Broadstone is a neighborhood in Folsom California that investors are also buying investment properties. Interestingly, the city is a quiet, friendly and very safe neighborhood with excellent schools, trails, parks and beautiful scenery. Landscaping is impeccable and the city services can’t be beaten.

Here are some of the important statistics for Broadstone

  • Overall Niche Grade – A+
  • Public Schools – A
  • Housing – A-
  • Population – 9,138
  1. Eureka

Another nice location to buy investment properties in California is Eureka. Although properties are not cheap in this location, but trust me you will get good returns on your investment (ROI) if you go all out to invest.

Here are some of the important statistics for Eureka

  • Median Property Price – $353,996
  • Price Per Sq/Ft – $220
  • Airbnb Rental Income – $3,221
  • Occupancy Rate – 55%
  • Walk Score – 63
  • Airbnb Cap Rate – 7%
  1. Natomas Creek

Natomas Creek is a good neighborhood in Sacramento, CA and of course one of the best places to buy an investment property in California. It is a good place for families to live. Although this part of town does not have active culture scenes, you’re only 10 minutes away from downtown and midtown and also 5 minutes away from SAC airport. Conveniently located. Housing price is about average but the school district is not great.

Here are some of the important statistics for Natomas Creek

  • Overall Niche Grade – A-
  • Public Schools – B-
  • Housing – B+
  • Population – 4,328
  1. Miramar Ranch North

Miramar Ranch North is a neighborhood in San Diego, CA and of course one of the best places to buy an investment property in California. No doubt, you are going to get a good return on your investment if you purchase an investment property in Miramar Ranch North and this can be confirmed with the rate at which real estate investment gurus are heading towards this location.

Here are some of the important statistics for Miramar Ranch North

  • Overall Niche Grade – A+
  • Public Schools – A+
  • Housing – B+
  • Population – 19,854

In Conclusion;

If you are a rookie when it comes to properties especially if you are not familiar with California, then you should contact The California Association of REALTORS® (C.A.R.). They are in a better position to guide you on the best locations to buy a property.

Solomon. O'Chucks