Have I missed my boat as a new investor in CA

[Brandon Pearsons]

Hello All,

It has been progressively worse since I have been seriously looking the past few years to invest in some SFH's to make rentals .

• Prices & interest rates have gone up making it very hard to have any decent cash flow return with 20%.

For you RE investors that have been out there a while. When do you think cash flow returns will get better? I cant seem to cash flow on 20% down any longer. The market supply is seems to be depleting and not being replenished causing sharp rising prices.

Thanks

[Ben Wakefield]

Here in El Segundo (near LAX) SFHs with 3/1 or 3/2 rent for about $2400-3200/mo which sounds great, but they cost about $800k to buy (excluding short sales if they come around). Which is about 0.4% of purchase price per month of rent...

Seems like a lot of folks are underwater in the nicer neighborhoods, which might be cool for flipping, but makes cash flowing pretty tough. I haven't looked at much larger complexes yet.

There are so many different neighborhoods in the LA area it's hard to say where a nice neighborhood starts and the ghetto begins. Sometimes it's only a couple blocks away...