As one of the most popular states to live and vacation in, California real estate is constantly in high demand, regardless of its price. Even if the Golden State is the most rewarding for both short-term and long-term real estate investments, entering its home market is not easy. However, don’t be put off by the median property price or the expense of living.
There are numerous regions where you can invest in rental homes and position yourself for financial success. The idea is to search beyond the big cities like San Francisco and Los Angeles. Whether you want to invest in a vacation house or host an Airbnb, these are the finest spots to buy a rental property in California.
Here Are the Best Places to Buy an Investment Property in Northern California:
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1. WINCHESTER
- Median property price: $652,102.
- Median rental price: $3,295.
If investing in rental property in Palm Springs, Los Angeles, or San Diego is too expensive for you, Winchester is the perfect compromise. Winchester, located in Riverside County, is one of the best places to buy rental property in Southern California. Renting out your Airbnb here results in a 74% occupancy rate. Winchester’s job market has also expanded in recent years, with the majority of residents employed in the computer industry, management, engineering, and business.
2. RANCHO CORDOVA
- Median property price: $507,404.
- Median rental price: $2,395.
Rancho Cordova is the finest spot to buy investment property in the Sacramento area. As the state capital’s main employment sub-center, the city draws more than 50,000 commuters. Rancho Cordova is the ideal location for investing in a second home, whether you plan to host an Airbnb or rent out your property long-term. The job market has seen an improvement. The majority of residents work in management, business, technology, and architecture.
3. ELKS GROVE
- Median property price: $619,139.
- Mdian rental price: $2,650.
If you’re looking to invest in real estate in the Sacramento area, Elk Grove is a fantastic alternative. Elk Grove, the second-largest city in Sacramento County, underwent tremendous expansion in the mid-2000s, making it one of the country’s fastest-growing communities. The city is home to Northern California’s largest school district, the Elk Grove Unified School District, which is also the area’s second-largest employer.
Elk Grove’s cost-of-living index is 138.7, and it’s worth noting that average Airbnb rental prices differ greatly from traditional rental rates. With its rising population and numerous attractions, Elk Grove is unquestionably one of the best places to buy vacation rental property in California.
4. Yuba City
- Median property price: $420,618.
- Median rental price: $1,695.
Yuba City is California’s 21st largest metropolitan area and the county seat of Sutter County. The city is close to Sacramento, Folsom Lake State Recreation Area, and Lake Berryessa—one of California’s strangest locations to visit—making it an ideal location for purchasing a rental property.
The cost-of-living index of Yuba City is 114.1, which is slightly higher than the national average. However, investing in a rental home here is not a bad option. Make your guesthouse more welcoming, and you will undoubtedly see an increase in Airbnb bookings.
5. DOUGLAS CITY
- Median property price: $325,052.
- Median rental price: $1,081.
Douglas City, located in Trinity County about 45 minutes from Redding, is often overlooked, yet it has suddenly emerged as one of California’s best places to buy investment property. Douglas City’s cost-of-living index is more than 100, making it less expensive than the national and California norms. Furthermore, the area has had good job development, making it a more appealing investment destination.
The city’s proximity to natural wonders adds to its appeal. It is close to the Whiskeytown National Recreation Area, which offers hikes to bright waterfalls and breathtaking vistas of majestic peaks. A short drive north leads to Shasta Lake and the Shasta-Trinity National Forest, both known for their spectacular landscapes and recreational activities, making Douglas City not only a sound investment but also a gateway to Northern California’s natural splendor.