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Survey: Most California Investors Opting to Hold Rather than Flip

A survey from the ""California Association of Realtors"":http://www.car.org/ (C.A.R.) revealed preferences and strategies of a typical California investor.


For the most part, investors in the Golden State plan to keep their purchase for at least a year.


According to the survey, 26 percent of investors who worked with Realtors over the last 12 months before April 2013 said they intend to flip the property within a year, while 66 percent plan to keep the property for more than a year as a rental. However, three-fourths of investors plan on retaining their property for less than six years.

About 75 percent of investors were in the ""mom-and-pop"" category, meaning they own one to 10 properties, while just 6.6 percent of investors own 11 to 20 properties, and 4.8 percent have 50 to 100 properties.

Investors were also largely drawn to single-family homes. According to the survey, 78 percent of transactions were for single-family homes, while 14 percent were for multifamily properties.

The survey also showed a strong preference for cash purchases, with 67 percent of investors buying with cash. Investment properties in the state were sold for a median sales price of $272,500, while the median price spent on repairs was $10,000. The median rate of return was 14 percent for investments.

About Author: Esther Cho


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