California is the most populous state in the nation, has the highest gross domestic product and covers more area than any other in the lower 48 states other than Texas. As such, the state of California has a vibrant and remarkably diverse real estate market. In fact, the National Association of Realtors Realtor Magazine just forecast the biggest home price increase (5 to 7 percent) in the state of California. For investment property, the potential profits will be even greater. Below are the key areas that will drive that increase:

San Francisco Real Estate Investment Market

Much like other port cities around the world like New York City and Hong Kong, San Francisco is seriously constricted on almost every side by water. This makes properties in the Bay Area highly desirable and usually outside the ability of most average workers to afford. Still, the Bay Area has a highly developed mass transit system that allows the vast majority of its suburban residents to work in and enjoy the downtown lifestyle.

The Bay Area includes a variety of neighborhoods from the wine country areas of Napa and Sonoma in the north as well as exclusive Marin County. To the south of San Francisco is San Mateo County and southeast is Santa Clara which can be quite pricey. In the East Bay, there is Alameda and Contra Costa Counties which is a more affordable fix and flip area. Experienced Real Estate Investors in the San Francisco area know the specific areas they are most comfortable with and tend to stay within the boundaries that have historically brought them the most profit. In short, the San Francisco area provides a wide range of real estate investment opportunities if you learn the areas where your working capital will bring the best return.

Los Angeles Real Estate Investment Market

Los Angeles County is the largest by population in the United States and, although is one of the largest cities in area, it is still densely populated. This and the fact that there is no real rail system has turned Los Angeles into the premier “car town” in America. Whether this is good or bad is left up to the reader, especially if you have ever experienced a “Sig-Alert” on any of the LA freeways.

LA County’s real estate investment opportunities are spread throughout a vast area that covers 4000 square miles and includes 158 cities and 114 neighborhoods within the actual city of Los Angeles alone. There are fix and flip opportunities in cities such as Santa Clarita to the north, Long Beach, San Pedro and Cypress to the South, and Downey and Azusa inland to name a few. The savvy real estate investor will know a deal that makes sense when he finds it. The opportunities are definitely plentiful in Los Angeles County.

San Diego Real Estate Investment Market

While downtown San Diego certainly has its charms, the city and the rest of the coast from La Jolla in the north to Coronado and Imperial Beach in the south is really focused on taking advantage of the Mediterranean climate that dominates the area. This is most obviously seen in the beach communities that dot the coast such as Mission and Pacific Beach. While it may be difficult to get fix and flip properties to pencil in these San Diego beach communities, there are many other areas in San Diego County that do make sense. Inland to the north you will find areas such as Oceanside, Vista, San Marcos, and Escondido where there are many rehab investment properties. Moving inland to the east there is Poway, Santee and El Cajon and to the south there are still great fix and flip opportunities in La Mesa, Lemon Grove and Chula Vista. In summary, the San Francisco, Los Angeles and San Diego Real Estate Market is chock full of areas where the experienced Real Estate Investor can make money. It just requires you to do your homework and find the right deal that makes sense.