How expensive is your county?

Here is an interesting article I came across that has been posted by the National Association of Realtors. If you click on this link, you will be directed to the website where you can hover over this map and see how much property sells for, on average, in every county in the United States. Take a look at the article if you are interested to see how your county stacks up against others.

Which counties are among the most expensive? It may come as no surprise that 4 of the top 5 are counties in California! Here are the top 5 most expensive counties:

San Mateo County, CA: $1,575,280

Marin County, CA: $1,467,100

Santa Clara County, CA: $1,459,600

San Francisco County, CA: $1,458,510

Nantucket County, MA: $1,444,050

I know that a lot of people read this and think they need to move because of how high prices are becoming in California, but the best option is not always to move to a more affordable area, especially for investors. California is an expensive state to live in, but it also has some of the best property value appreciation you can find. If you can afford the mortgage, it can be a great way to build equity and build your net worth if you buy right.

Most investors focus on either appreciation or cashflow. A lot of investors look to the midwest to find properties that cashflow well from the day they purchase the property. The problem with this strategy is that homes in the midwest just don’t appreciate as quickly as coastal counties do. While it may be harder to find good deals in expensive markets like California, they are out there.

What has worked for me is investing in California real estate. When I buy an investment property, I buy it at a 20%-50% discount. I do this by buying the ugly houses that need work. These houses are a turn off for many first time home buyers. Too much work is required for them to like the house and make an offer. And since I use my own money without paying for holding costs (paying a high interest loan while having the property sitting vacant, or during remodeling), I can actually afford to offer slightly more than wholesalers and flippers.

There are so many strategies you can use to be successful in real estate. I have chosen buy and hold investing because I am most interested in building wealth long term, not just making money. All of this is to say that expensive markets are just that. They are expensive. They will continue to be more expensive as time goes by, because they will appreciate at a higher rate than less desirable areas and counties.

As always, if you know anyone looking to buy or sell real estate in Yolo or Sacramento County, please keep me in mind!