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Josh Barker Real Estate Advisors

Real Estate Investment in Shasta County

Real Estate investments in Shasta County California are some of the most attractive investments the state has to offer. The return on investment and positive cash flow opportunities available in our area are much more attractive than many other locations throughout the state of California. This page will offer some insights into what to look for when identifying real estate investment opportunities as well as direct access to the majority of properties currently available.

Lets start by discussing how to determine the value of a real estate investment property...

Capitalization rate, more commonly referred to as "Cap Rate" and the Gross Rent Multiplier, more commonly referred to as "GRM" are both tools used for analyzing an income property and determining its value and/or profitability.

You may be asking...How can Cap Rate and GRM formulas be used for evaluating an income property? How are they calculated? And what are the advantages and disadvantages of each? Not to worry...We will give you a crash course on these formulas and how to apply them to real estate investing.

Both the Cap Rate and the GRM are formulas used to evaluate real estate investments and assist in determining value based on the amount of rental income that it can generate. The Cap Rate and the GRM are both used for real estate analysis by real estate investors, and they are both considered the basic tools for evaluating real estate investments.

Cap Rate

The capitalization rate value is a percentage value that measures the relationship between the NOI (net operating income) of an income property and its current market value.

The Cap Rate can be used to evaluate an income property and determine the percentage rate of its NOI to its value. The Cap Rate method is the most commonly used method for determining a value for Investors, Real Estate Professionals, Appraisers, and Banks.

Utilizing the capitalization rate value is a great method for evaluating an income property as it takes into account the property’s operational expenses as well as its current vacancy rate. In addition, the Cap Rate value can reveal whether the income property has the ability to pay off a mortgage or not.

Cap Rate Calculation

The Cap Rate is calculated using this simple formula:

Cap Rate = Annual NOI / Market Value

In order to determine the Cap Rate for an income property, you must do the research and obtain all the necessary information about the subject property, market conditions and Cap Rates for comparable investments. Determining the subject properties and comparable property expenses can be the most challenging part of determining an accurate Cap Rate. 

This same method used in reverse can also identify the market value for an investment property.

Market Value = Annual NOI / Cap Rate 

Gross Rent Multiplier (GRM)

The GRM measures the ratio between the property’s gross scheduled income (GSI) and its price. It is the faster and hastier method used by real estate investors in order to determine the amount of income that it will generate quickly.

GRM Calculation 

This is the formula used for calculating the GRM:

GRM = Market Value / Gross Scheduled Income (GSI)

As with the Cap Rate, In order to determine the GRM for an income property, you must do the research and obtain all the necessary information about the subject property, market conditions and GRM for comparable investments. 

This same method used in reverse can also identify the market value for an investment property. 

Value = GSI x GRM

A major disadvantage of using the GRM for investment property valuations is that it is based on the GSI. Meaning that it does not take into account the income property’s vacancy rate or its annual operating expenses.

Additional Thoughts 

The Cap rate formula is considered to be more reliable due to the attention put on operating expenses and vacancy factors. 

The Gross Rent Multiplier formula is the fastest way to estimate value. However, it does not account for operating expenses or vacancy rates.

Acceptable Cap rates vary by region as well as the age of the subject property. Generally speaking, the higher the percentage the better the investment. Big city investors are typically satisfied with 4%-5% returns, while markets like Shasta County want to see investments at 6% or higher. 

Acceptable Gross Rent Multipliers vary by region as well as the age of the subject property. Generally speaking, the lower the GRM number is, the better the investment. Big city investors are typically satisfied with a number of 15 or even higher, while Shasta County investors typically would not find that investment attractive.   

Cash on Cash Returns are another way to calculate investments. This calculation is typically used when using leverage to purchase an investment property. Due to the complexity of this analysis, we will keep it simple and say this. Cash on Cash returns determine the percentage of return on the actual amount of cash out of pocket invested. 

Upside Opportunity is a term frequently used by real estate investors and Real Estate Professionals. Generally speaking, this term relates to the upside potential of a real estate investment that does not currently exist. An example of an upside opportunity is a property that is undervalued due to pricing, poor management or poor condition which has the potential to be corrected. This term can also relate to properties that are rented below market rates and have the ability to receive rent increases in a projected period of time.  

If you have any additional questions regarding real estate investing, please feel free to contact our office at (530) 222-3800 We are always here to help.

Investment Properties

1940 Marx Way, Anderson image
1940 Marx Way, Anderson $395,000

Great visibility for your Commercial business. Lot is ready to be developed.

  • 22-4009 MLS
1925 Marx Way, Anderson image
1925 Marx Way, Anderson $435,000

Amazing opportunity to own a very visible lot to built your commercial building to fit your needs.

  • 22-4008 MLS
1975 Placer St, Redding image
1975 Placer St, Redding $475,000

Amazing downtown Redding office building. Currently multi tenant design with off street parking lot. Huge potential with the new courthouse just 2 blocks away along wit...

  • 22-4006 MLS
292 Hemsted Dr, Redding image
292 Hemsted Dr, Redding $2,325,000

Approximately 9,140 square foot 2-story professional office building directly on the bluffs in central Redding, CA with fantastic views and first class interior finishes....

  • 22-4000 MLS
2830 Childress Dr, Anderson image
2830 Childress Dr, Anderson $395,000

Was last a Mexican Restaurant. No kitchen equipment, does have tables and booths. Has 2 A/C units that are less than 3 years old. Allows 100 occupancy. Brick, Stone &...

  • 22-3987 MLS
2775 Ventura St, Anderson image
2775 Ventura St, Anderson $850,000

<b>Professional office building recently constructed and in shell condition. Ready for your interior improvements!</b><p>Located within a professional business park and ...

  • 22-3982 MLS
3007 Freeman St, Anderson image
3007 Freeman St, Anderson $190,000

A gem of a location in the heart of Anderson, currently used as a hair salon. Room for up to 5 hair stations, 1 nail station, and 2 washing stations. Also includes a rest...

  • 22-3967 MLS
5180 Westside Rd, Redding image
5180 Westside Rd, Redding $675,000

Huge upside potential with this commercial complex with (3) buildings. Central building is appx. 4,000 sf. with automotive tenant, rear building is 1,200 sf. storage/sho...

  • 22-3960 MLS
2172 Market St, Redding image
2172 Market St, Redding $475,000

Large commercial lot with 3 buildings used as retail, office and storage. High traffic location with great visibility. Very well know business location. Business is not i...

  • 22-3915 MLS
4900-4950 Mountain Lakes Blvd, Redding image
4900-4950 Mountain Lakes Blvd, Redding $3,785,000

2 Exceptional concrete tilt up buildings comprising of a total of approximately 46,500 sqft. Both buildings have extensive upgrades including 3 phase power, improved offi...

  • 22-3913 MLS
332 Knollcrest Dr, Redding image
332 Knollcrest Dr, Redding $475,000

Centrally located commercial parcel in Redding's premier business park. Multiple sizes to choose from by assembling the available parcels. Preliminary site plans/renderin...

  • 22-3906 MLS
333 Knollcrest Dr, Redding image
333 Knollcrest Dr, Redding $315,000

Centrally located commercial parcel in Redding's premier business park. Multiple sizes to choose from by assembling the available parcels. Preliminary site plans/renderin...

  • 22-3905 MLS
468 Hemsted Dr, Redding image
468 Hemsted Dr, Redding $315,000

Centrally located commercial parcel in Redding's premier business park. Multiple sizes to choose from by assembling the available parcels. Preliminary site plans/renderin...

  • 22-3904 MLS
444 Hemsted Dr, Redding image
444 Hemsted Dr, Redding $320,000

Centrally located commercial parcel in Redding's premier business park. Multiple sizes to choose from by assembling the available parcels. Preliminary site plans/renderin...

  • 22-3901 MLS
311 Knollcrest Dr, Redding image
311 Knollcrest Dr, Redding $235,000

One of the few commercial parcels available in Redding. Centrally located in Redding's first business parks. Design the building for exactly your use and specifications.

  • 22-3897 MLS
Collyer Dr & Old Oregon Trail, Redding image
Collyer Dr & Old Oregon Trail, Redding $550,000

Three parcels comprising the North West corner of Hwy 299 and Old Oregon Trail in between the Hwy 299 On Ramp and Collyer Drive near Shasta College, Simpson University an...

  • 22-3882 MLS
3749 Old Oregon Trl, Redding image
3749 Old Oregon Trl, Redding $285,000

2 parcels totaling 19.73 Acres of commercial land located off Hwy 44 at Old Oregon Trail. Parcels are split zoned.<p>The new lower asking price brings parcel 111-140-0111...

  • 22-3881 MLS
4191 Eastside Rd, Redding image
4191 Eastside Rd, Redding $975,000

NEED A PLACE TO GROW? A warehouse-manufacturing facility consisting of 23,400 sq ft w/ overhead crane (60 tons) & 2 pedestal cranes. 3 phase 440 electrical service. 41,0...

  • 22-3857 MLS
Twin View - 3307, Shasta Lake image
Twin View - 3307, Shasta Lake $4,500,000

47+ acres of high visibility I-5 and Twin View Blvd frontage in Shasta Lake City. Contiguous on south side to an approved 2 million square feet retail center in Redding. ...

  • 22-3844 MLS
2940 W Center St, Anderson image
2940 W Center St, Anderson $195,000

This property has been a fast food restaurant for 50+ years.Five years ago all code issues were permitted.Some equiptment was removed by the recent tenant.ADA bathrooms w...

  • 22-3788 MLS
6241 Churn Creek Road, Redding image
6241 Churn Creek Road, Redding $1,195,000

Four legal parcels totaling 106.89 acres located within the County of Shasta. The parcels consist of a 20 acre parcel accessed from Wooded Acres Subdivision with an appr...

  • 22-3781 MLS
6241 Churn Creek Rd, Redding image
6241 Churn Creek Rd, Redding $1,195,000

Four legal parcels totaling 106.89 acres located within the County of Shasta. The parcels consist of a 20 acre parcel accessed from Wooded Acres Subdivision with an appr...

  • 22-3779 MLS
2437 Old Eureka Way, Redding image
2437 Old Eureka Way, Redding $399,800

Now Available in desired Westside Location~Owner will Carry! Beautiful Building with designer Tuscan influences throughout. Front & rear entrances both offer ADA access. ...

  • 22-3745 MLS
2945 S Market St, Redding image
2945 S Market St, Redding $300,000

THIS IS A VACANT COMMERICAL LOT IN SOUTH REDDING

  • 22-3742 MLS
2098 Rebekah St, Anderson image
2098 Rebekah St, Anderson $450,000

Commercial Building in Anderson CA. Great corner lot location with over 2,000 square feet of warehouse space and 5 roll up doors, 2 drive through bays with a 14 foot door...

  • 22-3734 MLS
2370 Heryford, Redding image
2370 Heryford, Redding $59,000

Approx. 1/4 acre, level lot zoned HC, out of the way parcel ideal for storage or small shop. Close to the city good for service or tradesperson. City water line but no me...

  • 22-3655 MLS
2340 Sacramento Dr, Redding image
2340 Sacramento Dr, Redding $275,000 ▼

Zoned commercial and located in the ''Green Zone''.2 bedroom 1 bath home with 2-car detached garage situated on large level lot.

  • 22-3582 MLS
Old Oregon Trl & College View, Redding image
Old Oregon Trl & College View, Redding $549,900 ▲

Great opportunity to purchase in the highly coveted 'Highway Commercial' zoning. Possible permitted uses, per Shasta County, are convenience food store, fast food restaur...

  • 22-3544 MLS
3371 Bechelli Ln, Redding image
3371 Bechelli Ln, Redding $50,000

General Commercial zoned lot with 100 feet of frontage on Bechelli Lane & 150 feet deep.Curb, gutter, and sidewalk in place.City of Redding bus stop installed. Office? Cl...

  • 22-3492 MLS
870 Cypress Ave, Redding image
870 Cypress Ave, Redding $629,000 ▼

$70K price reduction! SBA must approve sale. 4,000sq/ft commercial building built in 2007 across the street from City Hall, RPD, & Cal Fire. The building has three separ...

  • 22-3461 MLS

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I can't recommend Josh Barker's team more highly. I was selling my house right after retirement, and attempting to purchase a home in Washington State. All these events are stressful, but Josh's team made the whole process painless. Josh came to my home and his confidence and expertise made me feel at ease immediately. They were there every step of the way with friendly encouragement and professionalism. They communicated with me at every phase of the process and immediately responded to my numerous questions. Because of their skill and experience they were able to work through what was a coplicated transaction between states. I sold my home for over the asking price and purchased a new one within two weeks of putting my home on the market. I can't imagine working with any other realtor; each person on the team was genuinely caring, and i always knew I was in good and capable hands. -Janice W. 


From the first time that we met with Josh, and all the way through until we had out house sold, it was a fantastic experience. Josh and his team are the best that I have ever dealt with. We also bought our new house with Josh Barker. I cannot recommend him enough. -Terry F. 


From start to finish our buying and selling experience was seamless. Josh and his team are attentive and honest, and quickly gained our confidence. Over the years my wife and I have bought and sold multiple homes with him. I recommend Josh and his team to everyone in need. -Chason S. 


We highly recommend Josh Barker and his Real Estate Team to anyone who is serious about selling a house. They make an exceptional team that thoroughly exceeded our expectations. They were always very knowledgeable, responsive, and had masterful techniques for negotiating on our behalf. Most importantly, they all showed genuine care when helping us and we felt as if they were part of our family as they had our best interest in mind each step of the way. Again, we appreciate and highly recommend them as leaders in this profession. -Cathy S. 


From the first moment Josh Barker walked into our home, my wife and I knew that we chose the right man to help through the difficult tasks of marketing, selling, and moving from our home in Redding, CA. Throughout the entire process, Josh and his team continually impressed us with their knowledge, professionalism, strategy, courtesy and willingness to assist us at all times. To Josh's credit, within the first five days of being listed for sale, our home was shown 14 times. We received 5 offers and accepted one that was considerably higher than our initial listing price. It could not have gone any smoother. If possible, I would have give Josh a 10 star rating. I wholeheartedly recommend Josh to any and all potential home sellers. GREAT JOB, JOSH!!! -Bob O.


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