--- title: 3 Compelling Reasons to Invest in California Real Estate description: Investing in property is a great way to generate a passive income and California is one of the bets places in the country to do it in. Here are three things you should consider when deciding whether or not to invest in California real estate. image: https://www.trustdeedcapital.com/hubfs/Stock%20images/Griffith%20Park%2c%20Los%20Angeles%2c%20California%2c%20USA..jpeg --- [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16494019-png/images/trust-deed-capital-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/) CALL 1 (888) 563-5588 Search ![Hard Money Lender Investors](https://www.trustdeedcapital.com/hs-fs/images/blog.png) ## [3 Compelling Reasons to Invest in California Real Estate](https://www.trustdeedcapital.com/blog/3-compelling-reasons-to-invest-in-california-real-estate) Posted by [Ken Meyer](https://www.trustdeedcapital.com/blog/author/ken-meyer) on Tue, Oct 30, 2018 - [Tweet](https://twitter.com/share) ![Real estate investments in California](https://www.trustdeedcapital.com/hs-fs/hubfs/Stock%20images/Griffith%20Park%2c%20Los%20Angeles%2c%20California%2c%20USA..jpeg?width=300&name=Griffith%20Park%2c%20Los%20Angeles%2c%20California%2c%20USA..jpeg)If you're looking for ways to broaden your investment portfolio, you should explore the possibility of purchasing a few pieces of [California real estate.](https://www.forbes.com/sites/ingowinzer/2018/03/01/investing-in-california-real-estate-here-are-a-few-things-you-should-know/#6950b6e66d6e) Investing in real estate, particularly a rental property, is often a good method for generating a steady passive income and also adds a large, tangible asset to your investment portfolio. There are a few good reasons to purchase a piece of [property as an investment,](https://www.forbes.com/sites/financialfinesse/2017/08/09/should-you-invest-in-rental-real-estate/#63423bc15c15) including: - Renting the property generates a steady cash flow - Owning a commercial property provides an opportunity to set the stage to earn an [ancillary real estate investment](https://www.investopedia.com/terms/a/ancillaryrevenue.asp) income - Tax write offs against the property - Additional tax deductions There are 3 reasons why California real estate is a particularly good investment currently: ## Market Experts Anticipate California Real Estate Quickly Appreciating Real estate marketing experts believe that California real estate is on the edge of a serious value increase, and they don't think you'll have long to wait to see the value of your property appreciate. They predict the property values increasing sharply over the next three years, which is great news for anyone who is interested in either purchasing a run down piece of real estate, fixing it up, and quickly flipping it. It's also good news if you're main concern is using the investment property as a rental property. Two areas where properties are expected to experience the greatest appreciation in a the very near future are San Diego and the Bay area. ## High Demand for Multi-Family Dwellings Chances are good that when you think about flipping a property, you think in terms of single family homes, however there are several parts of the country with a high demand for [multi-family dwellings,](https://www.bdcnetwork.com/5-intriguing-trends-track-multifamily-housing-game) including California. Based on current population growth predictions, California's housing market needs to come up with approximately [3.5 million more places for people to live by 2025.](http://www.latimes.com/opinion/editorials/la-ed-where-to-build-housing-20171220-story.html) This makes a strong argument for purchasing commercial buildings and using them as a rental property for a few years. The property generates a nice stream of revenue and if you decide to sell a few years down the road, you should earn a nice return on your investment. ## Great Tourism Market Most real estate investors don't give much thought to tourism when they're looking for an investment property, but in California, you should, especially if you're looking at properties near LA. Each year an estimated 10 million tourists visit LA and most are looking for a place to stay while in the city. Many of the tourists have started looking at Airbnb for lodging rather than the more traditional hotel option, and the [owners of California real estate are profiting.](https://www.mashvisor.com/blog/los-angeles-real-estate-investing-4-reasons/) Westchester is an LA neighborhood where Airbnb rentals are a common occurrence. The owners of the properties that use Airbnb report that they average about $5,844 per month from the revenue stream. The average revenue stream in nearby Los Feliz is $3,743. Trust Deed Capital wants to make your California real estate dreams come true. We specialize in providing the financing for flipping properties, commercial rental properties, and buy and hold properties. [Contact us](https://www.trustdeedcapital.com/contact-us) to learn more about our loan approval terms and fast response time.   [![New Call-to-action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/bdb27265-4231-47ad-a80d-eba96d3c6979.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/bdb27265-4231-47ad-a80d-eba96d3c6979)[![Do I Qualify for a Hard Money Loan?](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/825238e7-1ebf-4e9a-960f-50d93dc08439.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/825238e7-1ebf-4e9a-960f-50d93dc08439) ### Have Questions? [![New Call-to-Action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/cf54edd7-d8f4-4871-aafd-a8cc5b76667e.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/cf54edd7-d8f4-4871-aafd-a8cc5b76667e) ### Subscribe via E-mail ### Connect With Us [![New Call-to-action](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/0427129d-319c-4434-b1fc-8288f0a96fdf.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/0427129d-319c-4434-b1fc-8288f0a96fdf) [![Click me](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/9b675c39-e065-48bd-9be4-27a27260541f.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/9b675c39-e065-48bd-9be4-27a27260541f) [![Click me](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/115318/768f75b8-2827-4c95-9d49-6cdf67e0fa5c.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/115318/768f75b8-2827-4c95-9d49-6cdf67e0fa5c) ### Latest Posts ### Categories - [fix and flip (95)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip) - [fix and flip real estate investments (43)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip-real-estate-investments) - [fix rehab properties (42)](https://www.trustdeedcapital.com/blog/topic/fix-rehab-properties) - [real estate investing (38)](https://www.trustdeedcapital.com/blog/topic/real-estate-investing) - [fix and flip loans (34)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip-loans) - [Smart Investing (29)](https://www.trustdeedcapital.com/blog/topic/smart-investing) - [hard money lenders (29)](https://www.trustdeedcapital.com/blog/topic/hard-money-lenders) - [hard money loans (27)](https://www.trustdeedcapital.com/blog/topic/hard-money-loans) - [real estate investors (24)](https://www.trustdeedcapital.com/blog/topic/real-estate-investors) - [buying investment property (23)](https://www.trustdeedcapital.com/blog/topic/buying-investment-property) - [real estate investments (23)](https://www.trustdeedcapital.com/blog/topic/real-estate-investments) - [real estate investor (23)](https://www.trustdeedcapital.com/blog/topic/real-estate-investor) - [Fix and Flip Education (22)](https://www.trustdeedcapital.com/blog/topic/fix-and-flip-education) - [Renting Strategy (20)](https://www.trustdeedcapital.com/blog/topic/renting-strategy) - [investment property (20)](https://www.trustdeedcapital.com/blog/topic/investment-property) - [real estate market (19)](https://www.trustdeedcapital.com/blog/topic/real-estate-market) - [hard money (17)](https://www.trustdeedcapital.com/blog/topic/hard-money) - [Rental Property (16)](https://www.trustdeedcapital.com/blog/topic/rental-property) - [borrowers (16)](https://www.trustdeedcapital.com/blog/topic/borrowers) - [hard money lender (16)](https://www.trustdeedcapital.com/blog/topic/hard-money-lender) - [Investors](https://www.trustdeedcapital.com/understanding-trust-deeds/) - [Understanding Trust Deeds](https://www.trustdeedcapital.com/understanding-trust-deeds) - [Our Business Standards](https://www.trustdeedcapital.com/our-business-standards) - [Yield Comparisons](https://www.trustdeedcapital.com/yield-comparisons) - [The Process](https://www.trustdeedcapital.com/investor-process) - [Available Trust Deeds](https://www.trustdeedcapital.com/trust-deeds-available) - [Investor FAQs](https://www.trustdeedcapital.com/investor-faqs) - [Investor Testimonials](https://www.trustdeedcapital.com/investor-testimonials) - [Investor Documents](https://www.trustdeedcapital.com/investor-documents) - [Borrowers](https://www.trustdeedcapital.com/borrowers/) - [Loan Programs](https://www.trustdeedcapital.com/loan-programs/) - [The Process](https://www.trustdeedcapital.com/borrower-process/) - [Borrower FAQs](https://www.trustdeedcapital.com/borrower-faq/) - [Borrower Testimonials](https://www.trustdeedcapital.com/borrower-testimonials/) - [Borrower Documents](https://www.trustdeedcapital.com/borrower-documents/) - [Brokers](https://www.trustdeedcapital.com/brokers/) - [Loan Programs](https://www.trustdeedcapital.com/broker-loan-programs/) - [The Process](https://www.trustdeedcapital.com/broker-process/) - [Broker FAQs](https://www.trustdeedcapital.com/broker-faq/) - [Broker Documents](https://www.trustdeedcapital.com/broker-documents/) - [Realtors](https://www.trustdeedcapital.com/realtors/) - [Loan Programs](https://www.trustdeedcapital.com/realtor-loan-programs/) - [The Process](https://www.trustdeedcapital.com/realtor-process/) - [Realtor FAQs](https://www.trustdeedcapital.com/realtor-faq/) - [About Us](https://www.trustdeedcapital.com/our-company/) - [Our Company](https://www.trustdeedcapital.com/our-company/) - [Our Mission](https://www.trustdeedcapital.com/our-mission/) - [Our President / CEO](https://www.trustdeedcapital.com/our-president-ceo/) - [Careers](https://www.trustdeedcapital.com/careers/) - [Contact Us](https://www.trustdeedcapital.com/contact-us/) - [Resources](https://www.trustdeedcapital.com/resources/) - [Recommended Links](https://www.trustdeedcapital.com/links/) - [Forms](https://www.trustdeedcapital.com/forms/) [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16459350-png/images/foot-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/ty-the-best-of-hard-money-articles#) - 120 Newport Center Drive, Suite 262 - Newport Beach, Ca. 92660 - CALL 1 (888) 563-5588 [![American Association of Private Lenders](https://www.trustdeedcapital.com/hs-fs/file-16459062-png/images/foot-assoc.png "American Association of Private Lenders")](http://www.aaplonline.com/) - [![Like us on Facebook!](https://www.trustdeedcapital.com/hs-fs/file-16456386-png/images/facebook.png)](http://on.fb.me/ovGeDr) - [![Follow us on Twitter!](https://www.trustdeedcapital.com/hs-fs/file-16497114-png/images/twitter.png)](http://twitter.com/#!/trustdeedcap) - [![Connect with us on LinkedIn!](https://www.trustdeedcapital.com/hs-fs/file-16469641-png/images/linkedin.png)](http://goo.gl/UXhHe) © 2015 Trust Deed Capital, Inc. | [California Bureau of Real Estate, Real Estate ](http://www.dre.ca.gov/) Broker #1805798-NMLS #296507 | [Privacy Policy](https://www.trustdeedcapital.com/privacy-policy) | [Contact Us](https://www.trustdeedcapital.com/contact-us)