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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

1750 South St, Anderson image
1750 South St, Anderson $175,000

1,153 s/f Commercial Building. Great exposure and parking. Two offices and waiting area. 5,000 s/f building next door also available. Selling separate or together.175...

  • 23-858 MLS
1756 South St, Anderson image
1756 South St, Anderson $495,000

5,000 s/f Commercial Building with zoning around education, church, club or general commercial. Full solar installed. Located in west Anderson, CA. Good parking and sec...

  • 23-857 MLS
7536 Happy Valley Rd, Anderson image
7536 Happy Valley Rd, Anderson $1,150,000

Limited Time Offering to acquire a building at 'distressed sale pricing'! This is an excellent investment opportunity for any savvy buyer looking for massive upside poten...

  • 23-856 MLS
993 Lake Blvd, Redding image
993 Lake Blvd, Redding $199,900

Single-Story Office/Retail Bldg. on high traffic street with excellent exposure.

  • 23-771 MLS
2700 West St, Anderson image
2700 West St, Anderson $165,000 ▼

Awesome location in central Anderson right off of South St! Very close to Hwy 273 and I-5. Hard to find 1,920 sqft metal warehouse with large sliding metal door and priv...

  • 23-711 MLS
3675 Boeing Dr, Redding image
3675 Boeing Dr, Redding $2,422,000 ▼

12 Lot Fully Approved Subdivision. Located close to the Redding Airport this property offer a Developer the Perfect Opportunity to Build High Demand Industrial Buildings....

  • 23-555 MLS
3640 Main St, Cottonwood image
3640 Main St, Cottonwood $475,000

5.24 acres of Mixed Use land with 3 residential rental units and 1 commercial (previously a doughnut shop) rental unit. Each Unit individually metered Located right on Ma...

  • 23-541 MLS
2690 Bechelli Lane, Redding image
2690 Bechelli Lane, Redding $395,000

100% Leased Strip Retail Center consisting of 5 units, each is set up for small retail businesses. In-demand sizes, easy to lease. Large pylon sign on Bechelli for adver...

  • 23-533 MLS
3040 North St, Anderson image
3040 North St, Anderson $275,000

Flat, usable 1.48-acre Commercial lot in the northeast area of Anderson near the Airport, shopping, fast food restaurants and easy freeway access. This large, corner lot ...

  • 23-531 MLS
1950 Buenaventura Blvd, Redding image
1950 Buenaventura Blvd, Redding $399,000

Large 9 acre semi-private Industrial Parcel in Southwest Redding. Approximately 5.5 acres of flat, usable area in the ''Green Zone''. Substantial earthwork completed in a...

  • 23-514 MLS
Placer And Liberty Streets, Redding image
Placer And Liberty Streets, Redding $445,000

Great opportunity for possible medical office or mixed use project. Well located near Shasta Community Health Center in downtown Redding. This offering consists of 3 parc...

  • 23-515 MLS
1805 Buenaventura Blvd, Redding image
1805 Buenaventura Blvd, Redding $125,000

West Redding General Commercial Building Pad. Surrounded by professional offices and retail in a High End area makes for the perfect location to build your professional o...

  • 23-447 MLS
1975 Placer St, Redding image
1975 Placer St, Redding $495,000

Downtown Redding office building near new courthouse with private parking lot. Currently 100% occupied. Newer HVAC. Some remodeling. The perfect opportunity for long ...

  • 23-440 MLS
Ashby Rd, Shasta Lake image
Ashby Rd, Shasta Lake $2,000,000

150 Acres of General Industrial Land in the Cannabis Green Zone of Shasta Lake CA. Here is your OPPORTUNITY to grow your business in Northern CA. Shasta Lake City is a fr...

  • 23-423 MLS
3021 Northwoods, Redding image
3021 Northwoods, Redding $189,000

Level 0.5 acre (21,780 sq.ft,) commercially zoned lot in the center of the commercial district, just off and visible to, Hartnell Ave. Ideal for small infill project or o...

  • 23-420 MLS
1860 Canby, Redding image
1860 Canby, Redding $650,000

Outstanding opportunity in this 2.7 acre redevelopment site in the heart of Redding's commercial district. The property is zoned commercially and will support a wide vari...

  • 23-406 MLS
Main St, Cottonwood image
Main St, Cottonwood $324,000

Commercial acreage with 10 sewer connections, 5 per parcel! Difficult to find sewer connections in the Historic town of Cottonwood. Give your business the exposure it n...

  • 23-343 MLS
1140 Pine St, Redding image
1140 Pine St, Redding $350,000

Reduced Price!!!! Opportunity Awaits Your Investors!! Heading North on Pine Street at curve turns into Eureka way. Property includes the corner planterarea too, electrica...

  • 23-340 MLS
Knighton Rd, Redding image
Knighton Rd, Redding $365,000

Nice property in the Churn Creek Bottom/Knighton Road neighborhood. Easy access to I-5, but also provides quiet solitude. Zoning is Limited Agriculture (A-1) which allows...

  • 23-337 MLS
2428&2424 Victor Avenue, Redding image
2428&2424 Victor Avenue, Redding $699,000 ▼

3840 sq ft commercial building has 4 units each metered separately with 6 roll up doors and 5 heaters and coolers. Two parcels total approximately 0.8 ac. Gated entry and...

  • 23-241 MLS
2127 Airpark Dr, Redding image
2127 Airpark Dr, Redding $650,000

2,433 square foot first-class stand-alone dental office available for sale in the Escorial Office Park in west Redding, CA, across from the Benton Airfield and just 0.7 m...

  • 23-225 MLS
2644 North St, Anderson image
2644 North St, Anderson $495,000

Interstate-5 frontage exposure commercial building. Neighboring developments are being completed. Great location for storefront opportunities. Space can be split into t...

  • 23-192 MLS
4174 Ashby Ct, Shasta Lake image
4174 Ashby Ct, Shasta Lake $529,900 ▼

Commercial four-plex with direct Shasta Dam Blvd exposure and high traffic count. Large 47 stall parking lot was just recently resurfaced/restriped and has access to 3 n...

  • 23-111 MLS
20573 Sunset Lane, Redding image
20573 Sunset Lane, Redding $69,000

Level partially fenced parcel zoned M-L. There is a well and septic on the property from a previous residence that was on the property that has been removed. Ideal for a ...

  • 23-91 MLS
1807 Cascade Blvd, Shasta Lake image
1807 Cascade Blvd, Shasta Lake $145,000

Commerical Garage on just over 1/4 acre in Shasta Lake City. Easy Freeway Access, corner lot. Zoned General Commercial/Community Commercial Design (zoning attachment in...

  • 23-65 MLS
Smith Rd, Redding image
Smith Rd, Redding $7,499,900

74.07 Acres of Prime I-5 Frontage directly in the path of future development. Located off the first I-5 exit as you enter the City of Redding the property is adjacent to ...

  • 23-51 MLS
3266 Cascade Blvd., Shasta Lake image
3266 Cascade Blvd., Shasta Lake $799,000

GREEN ZONE! ENDLESS OPPORTUNITIES! CUP for Micro Cannabis License~Retail Nursery (Clones), Distribution & Cultivation (Clones) & Testing Lab. Approved Plans go W/ Sale....

  • 22-5877 MLS
3250 Cascade Blvd., Shasta Lake image
3250 Cascade Blvd., Shasta Lake $199,000 ▲

GREEN ZONE: TWO SEPARATE LOTS SOLD TOGETHER! I-5 Freeway Exposure! Over 3/4 Acres of Commercial land, with approx. 99 ft. of Cascade Blvd. frontage visible from I-5 Sou...

  • 22-5876 MLS
3220 Cascade Blvd., Shasta Lake image
3220 Cascade Blvd., Shasta Lake $499,000

GREEN ZONE & EXCELLENT I-5 FREEWAY FRONTAGE EXPOSURE! Shop & Home on the same property! Great opportunity for the entrepreneur! CUP for Micro Cannabis License~Retail N...

  • 22-5875 MLS
3340 Bechelli Ln, Redding image
3340 Bechelli Ln, Redding $765,000

Low maintenance mixed-used 100% leased investment property available for sale on busy Bechelli Lane in Redding, CA. Built-in 1979, the front commercial building is appro...

  • 22-5864 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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