Just like other housing markets in the US, the California real estate market was greatly affected by the coronavirus pandemic. From March onward, sales activity in the California housing market 2020 experienced a sharp decline as buyers backed off due to COVID-19 concerns. A poll by the California Association of Realtors (CAR) revealed that 54% of realtors had buyers that withdrew from a property purchase due to coronavirus.
However, with the gradual opening of the economy, the housing market has been picking up slowly from June. Due to pent up demand from the lockdown period and low mortgage rates, there are more buyers in the market looking for California investment property. However, there are fewer homes available for sale. As a result, prices have been steadily rising over recent months. For example, figures from ManageCasa show that California’s median home price rose by 6.4% from $626,170 in June to $666,320 in July. This is 9.6% higher than the price in July 2019.
To save money when buying property in California, you need to have a strategy for locating affordable real estate. If you know where to look, finding the cheapest real estate in California should not be very difficult.
The Most Affordable Cities in California
Looking for the most affordable cities in California? These are some of the relatively affordable cities based on median price, as well as profitable on the basis of good cash on cash return.
These figures for most affordable cities in California are derived from Mashvisor’s data.
#1. Madera, California
- Median Property Price: $333,264
- Price/Square Foot: $181
- Traditional Rental Income: $1,474
- Traditional Cash on Cash Return: 1.5%
- Days on the Market: 51
- Price to Rent Ratio: 19
#2. Stockton, California
- Median Property Price: $348,107
- Price/Square Foot: $208
- Traditional Rental Income: $1,513
- Traditional Cash on Cash Return: 1.1%
- Days on the Market: 52
- Price to Rent Ratio: 19
#3. San Bernardino, California
San Bernardino is one of the (relatively) affordable cities in California.
- Median Property Price: $356,392
- Price/Square Foot: $242
- Traditional Rental Income: $1,758
- Traditional Cash on Cash Return: 1.4%
- Days on the Market: 63
- Price to Rent Ratio: 17
#4. Oroville, California
- Median Property Price: $356,537
- Price/Square Foot: $209
- Traditional Rental Income: $1,446
- Traditional Cash on Cash Return: 1.5%
- Days on the Market: 100
- Price to Rent Ratio: 21
#5. Bakersfield, California
- Median Property Price: $370,390
- Price/Square Foot: $178
- Traditional Rental Income: $1,640
- Traditional Cash on Cash Return: 1.5%
- Days on the Market: 57
- Price to Rent Ratio: 19
Related: Have You Heard? The Bakersfield Housing Market Is Hot
#6. Cathedral City, California
- Median Property Price: $391,654
- Price/Square Foot: $212
- Traditional Rental Income: $1,887
- Traditional Cash on Cash Return: 1.3%
- Days on the Market: 55
- Price to Rent Ratio: 17
Related: California Is Emerging as the Best Place to Invest in Real Estate
These are just a few of the most affordable cities in California. Even with a list of affordable real estate markets, you still need to know how to find affordable real estate for sale. For that, use Mashvisor’s tools.
Tools for Finding Affordable Real Estate in Any City in California
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Rental Property Finder
The rental property finder makes it easy for California real estate investors to find the best-performing rental properties in their budget. All you need to do is type the name of the city, and then use the following filters to narrow down your search:
- Miles
- Budget
- Rental strategy
- Type of property – Condo, coop, multi family homes, single family homes
- Number of bedrooms and bathrooms
With the click of a button, the rental property finder will show you several rentals with the highest return on investment for your desired price range.
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Mashboard
One of the best ways to get a good real estate deal is to find a property owner that has not listed their home for sale. However, the main problem is that getting property owner information and data is not easy. Luckily, with Mashboard, you can easily locate off market listings all over the US. You can narrow down your property owner search to a city or neighborhood in the California real estate market. Set a few more filters and then you can access the names, phone numbers, and email addresses of property owners. You can even reach out to property owners directly on the platform to start negotiations.
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Property Marketplace
The Property Marketplace is yet another great tool for finding affordable rental properties for sale – auction homes, bank owned homes, short sales, and foreclosures. Property filters like miles, budget, type of property, and rental strategy will help you narrow down the listings to fit your criteria.
Don’t Forget to Look for Affordable Real Estate That Is Also Profitable!
When you’re investing in real estate, a good deal is not just defined by a cheap price. It is also one that will provide a good return on investment. To ensure you’re finding properties that meet this description, analyze them using the rental property calculator.
The rental property calculator can be accessed from all the other tools listed above. If you want to purchase an investment property with a good ROI, you need a way to carry out an accurate and quick rental property analysis. This is where the rental property calculator comes in handy. For any investment property on sale that you find on the Rental Property Finder, Mashboard, or the Property Marketplace, you can get a comprehensive property analysis that includes:
- Rental income
- Estimated rental property expenses
- Occupancy rate
- Built-in mortgage calculator
- Cash flow
- Cash on cash return
- Cap rate
- Rental strategy comparison (traditional vs Airbnb)
- Real estate comps
- Real estate investment payback balance
The good news is that all this data is pre-calculated. This saves you the trouble of manually calculating any figures. The rental property calculator is also a very interactive tool. Any alterations you make on the mortgage calculator or to rental property expenses will be instantly reflected in the cash on cash return and cap rate.
Related: Rental Property Calculator: The Must-Have Real Estate Investment Tool
Conclusion
Finding the most affordable cities in California is not difficult. Just be sure to follow up by using the right real estate investment tools during your property search. Mashvisor’s tools are your best bet for locating the best deals for rental properties in California. The tools are not only accurate but also easy to use for anyone looking for a California real estate investment.
To get access to our real estate investment tools, click here to sign up for Mashvisor today and enjoy 15% off.
Not concerned about the price tag? Then check out the best places to invest in California.