if someone were to buy a house hack or a rental property, how would he evaluate what neighborhood to buy in wrt the future re-sell potential of the house and the ability of prices to not fluctuate greatly with changing times?
Real Estate Agent · Los Angeles, CA · Member since 2022 · 137 posts · 106 votes
3y
You really just want to ask yourself "who would buy this from me? are there many people here that fit that buyer profile? does that buyer profile have more or fewer reasons to buy here moving forward? what would have to change for that buyer to no longer want to buy here? what would have to change to 10x the number of buyers that would want to buy from me?"
Good questions. First, it's important to know that there is always risk in real estate. Due diligence can help mitigate risk, but no one has a crystal ball. If you believe that history repeats itself, you'll see that LA markets have appreciated over time. More specific to neighborhoods you'll want to drive the areas, build a local team, or perhaps look at online data from websites like city-data.com or niche.com or greatschools.org.
Things you have control over are better to consider. For example, value adds like remodeling are a better way to get a lower priced property, and add value over time.