what would you do in an overpriced market like CA ?

It would be nice to know the creative ways of investing where homes are overpriced for instance, CA market.

I am looking forward to hear from you , yes, u experts out there.

Personally, I’m avoiding it and looking at out of state opportunities. That’s harder unless you have people you trust other places. If you want to stick to Cali, just hang on and wait until everyone with an ARM has to refi.

I’d move!!!

Hey now, it’s a good place to live. It’s just not a good place to invest right now.

What don’t you just come to Texas, like everyone else. Pick a city any city. you will do just fine.

I’m with Mike…I would (and did) move out of the DC area…

California’s too “blue” anyway…


Here is what I would do in CA. I would sell my property, invest it in a very safe investment for 3 years, then rent. Once things cool down, which in CA may mean 10-15% over the next few years or more, then I would go for a bargain buy and attempt a shot at a much nicer home than I sold. But that’s me. The problem is people are too emotional attached to their homes. I would bet that if you sell now, invest and re-buy in three years you will be able to get a much better situation. But, it is a risk of course.

it’s hard to say but i dont mind investing out-of-state only if i know that i can break even or get some cash out of it…

buying out single family homes in SoCal and renting them out at cash flow break even is pretty much gone forever (IMHO). The price to rent ratio is too far out of wack. Even if the pirces drop 30% and rent climb by 50%, most areas still would not make the numbers work. By the way if the prices drop 30%, you could see a price war break out in the SFR rental market as well as people who have to move for job end up stuck with a house, don’t want to take loss and try to ride it out for a few years by renting it out at any price.

I guess it all depends on what your investment niche is. I mean, if you are buy and hold - Cali isn’t for you right now. But, there are plenty of other options - rehabbing, wholesaling, sub2, and multi-family. In some areas if you have a little cash to work with you can get multi-fams to cash flow. Stick to your criteria and only do the deals if they work out on paper.

Is it overpriced or just expensive? Only time will tell.

If I was concerned with prices dropping then I would look for fixer uppers and turn them as quickly as possible.

See if I was there I would focus on SHORT SALES and bang each deal for 3-5k and do 10-20 a month… I agree SoCal sucks. On the other hand when your market shifts shift with it watch what others are doing and do something different… If that does not work change your approach… if that does not work change it again… It will work…