Thinking of investing in California real estate? If you’re going to be renting your investment property, these five cities are all great options. Take a look at our list of the five best cities to buy a rental property in California.
As one of the most historic cities in California, Sacramento has a lot to offer renters – making it attractive to rental property owners. With plenty of employment opportunities and lots of universities nearby, Sacramento is a great place to find renters looking for more affordable housing.
4. Manhattan Beach
A coastal city in Southeastern Los Angeles County, Manhattan Beach is known for its stunning views and excellent school system. While Manhattan Beach may be one of the most expensive cities to purchase property in California, renters continue to flock to the city. While pricey, the growth is extremely attractive for investors.
Many large investment firms have turned their eye towards Oakland since the recession, including Colony Capital who bought hundreds of distressed East Bay homes. People under the age of 35 are appreciating Oakland and this is driving rental prices up, making the city a good look for potential investors.
Located in the San Joaquin Valley of California, Bakersfield is a diverse city with plenty of job opportunities. It’s main industries include oil, agriculture, and manufacturing, and it sits in the fourth most agriculturally productive county in the USA. Home prices have been escalating and foreclosures have led to a higher demand for rentals in the city.
1. Santa Clara
Home to the new San Francisco 49er’s stadium, Santa Clara tops our list of cities in California to own a rental property. A high rental demand in the market means that Santa Clara now boasts some of the highest rent prices in the state, and with plenty of job opportunities available we’re seeing an influx of demand.