El Segundo, CA · Member since 2014 · 25 posts · 5 votes
Hi everybody,
I'm starting out from scratch in this crazy RE world in Los Angeles, and I've heard from many people that before I go out trying to find a deal that I should first become an expert on (or at least be familiar with) the local market so I know the comps. I live in the Los Angeles area and there are a TON of different municipalities and neighborhoods here; it's the Land of Endless Sprawl.
I doubt it's feasible to be an expert in all neighborhoods in LA, but how wide of a net do I need to cast? Is my little 16,000-person suburb enough? A larger area like "the South Bay"?
Any advice from LA-area folks would be aweome, or anybody with experience doing REI in big cities. I'm looking more at the Buy and Hold side, if that makes a difference.
@Ben Wakefield This is a great question that I quite often ask myself, as I'm sure many new investors do as well. From the countless blogs and forum posts I've read on BiggerPockets it seems as though a lot of investors choose to stick with neighborhoods/municipalities they currently live in, or are already familiar with (it cuts out the step of learning a whole new market).
I'm not sure if there is a correct answer to your question. It is most likely what you feel comfortable with and you can assume your net will grow over time. Granted I'm a new "investor" my self as I haven't made and deals just yet but am getting closer and closer as the days go on. I'll be interested to hear what other experienced investors have to say.