California is an attractive location because of its beaches, economic opportunities, and sunny weather, along with the diverse cultures and food options, natural landscapes, and tech and entertainment industry opportunities. However, it’s also an expensive place to live. The good news is, the expense hasn’t made the state any less attractive to real estate investors. In fact, the fix and flip market is incredibly active in California. Before you get started on this type of real estate investing, it’s essential to learn about the five top cities to consider when shopping for a fix and flip investment in California.
If you’re looking for a smaller city with plenty of farmland and nature around, Modesto is the ideal location in Central California. The median home value in this city is just over $260,000, which is a nearly five percent increase over the last year. Many flippers love this area because the overall cost of buying a home is lower than many other areas of California, making it an ideal location to invest in a fix and flip project.
Rancho Cucamonga is a more prominent city located in Southern California, surrounded by breathtaking mountain views. Although the area tends to be expensive with a median home value of nearly $470,000, the city offers a small-town, quiet feel, particularly when compared to the larger cities like Los Angeles. Home values are expected to continue to rise about 4.5 percent each year.
Sacramento is the state capital and is located in Northern California. It’s an excellent place to engage in fix and flip projects with an excellent return on your investment.The city offers a median home value of around $300,000 with many fix and flip investors generating an average profit of $90,000 for each home they buy and renovate. You won’t find a more affordable place to invest in real estate in the state without spending more money.
Ontario isn’t just a city in Canada. It’s also the name of a city close to Los Angeles and San Bernardino. It’s the next door neighbor to Rancho Cucamonga with home values around $387,000. However, the rate of appreciation is higher in this city at 5.2 percent, making it an excellent alternative to more expensive areas of the state.
Orange County in California is the central location for technology and education with higher incomes and a strong economy. If you have more money to invest in real estate, Irvine is the ideal location. The city boasts median home values of over $790,000, making it a much more expensive location than the other cities on our list. Fortunately, the profit potential is high because the area attracts a wealthy crowd.