As you may have read, not many properties in LA cash flow right off the bat. That doesn't mean that they don't exist but with rent control throughout the city, many units have lower than market rents while the asking price is taking into consideration market rents. If you are a new investor, I suggest reading up on all things real estate.
We would need to know more about your goals, financial situation, and area of Los Angeles to give more advice.
Real Estate Agent · Los Angeles, CA · Member since 2019 · 58 posts · 11 votes
7y
@Wiley Strahan hello, Im actually looking into everything outside of Los Angeles. It’s too expensive to invest. More specifically I’m looking into the IE or anything east of Los Angeles.
Thanks for the clarification - there are a number of threads on here about CA investors looking outside of CA to invest. A states folks have been focusing on: Texas, Missouri, Florida, Alabama, Ohio, Illinois. I suggest reading up on BP as there are a bunch of threads on this exact topic.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
7y
It'll have to be out-of-state for cash flow. Are you wanting to buy properties you have to put work into or properties that are rent-ready/turnkey? How much capital do you have to work with?
New to Real Estate · Los Angeles · Member since 2019 · 19 posts · 4 votes
7y
@Nancy Mascorro thanks for asking this! I'm in the same boat. Looking to invest out of state for cash flowing property.
I am reading the book on long distance investing....I was hoping to purchase my own property here just so that I don't have to throw money into the abyss by renting (paying $3000/month). But perhaps I should just continue renting and start with investing out-of state!
@Ali Boone I have around 50k right now...not a lot by any means. I guess with this amount of money, Im looking at investing in a place where I can do some work (BRRRR)?
@Wiley Strahan thanks for the advice, I will look into Texas, Missouri, Florida, Alabama, Ohio, Illinois.
Have your properties been appreciating at a decent rate?
Sorry for all the questions. I have heard good things about Cleveland.
Hi, it's been going great. I currently have about 20 doors plus a handful of flips going on. Unlike CA or HI, Cleveland doesn't appreciate as much. For me it's all about cash flow. All the best.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
7y
Originally posted by :
I have around 50k right now...not a lot by any means. I guess with this amount of money, Im looking at investing in a place where I can do some work (BRRRR)?
$50k is pretty decent. You can get 1-2 turnkeys with that (I work with turnkeys myself) or probably do a BRRRR (but I don't do those so can't really advise there).
Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes
7y
I also live in California and invest out of state. I settled on Cleveland for now. Cons: historically no appreciation, very old housing stock, super-high property taxes (especially in the suburbs), harsh weather (wear & tear on the properties), landlord-hostile city gov'ts (depending on the city). Pro: super-high cash flow (makes up for all those cons!)
@Ali Boone I would prefer a turn key property but if it’s much more cheaper to do a fixer upper I wouldn’t mind that either.
I have 10k (not a lot) but I have a lot of credit (I know that is not recommended) but sometimes you have to work with what you have.
Also, I have family members that would lend me money if needed.
If you're talking about out-of-state, turnkey vs. a fixer-upper will really be two very different animals in terms of strategy. $10k will be short for both of them. For a decent turnkey, you'll need a minimum of $25k ($20k on a major stretch), as it will be 20% down for the loan plus closing costs. I don't do fixer-uppers so can't offer any advice there, but fixer-uppers typically require more money out of pocket for the rehab.
Investor · Bothell, WA · Member since 2015 · 214 posts · 104 votes
7y
@Nancy Mascorro I'm in Dallas Fort Worth area. I can't really compare because I haven't been in other areas. A few years back when I was looking for properties, Austin was already too pricy. Houston was suffering the oil burst and was flooded. So I chose DFW. Now I DFW is getting pricy. I heard Houston is coming back. A lot of investors are going to San Antonio as well.
Investor · Bothell, WA · Member since 2015 · 214 posts · 104 votes
7y
@Nancy Mascorro I put 20% down. You can probably use private money, line of credit or hard money if you want to do less than 20%. I haven't been able to find that good of a deal to justify the numbers with special financing. I'm a small investor from out of state, so I don't have access to the insider deals yet.
TBH 10k is going to be tough to invest with. You can also look into hard money, but its very competitive these days. Those lenders want track record. Keep getting education and diligently save. Assuming you are not a real estate professional, if you plan on being investor full-time find someday, find a way to break into the industry. If you plan on keeping your current career, find ways to increase your income. One thing that is tough, especially investing out of state is that you typically need money. I personally would not use credit as downpayment if you can't pay that back in a timely manner.