Updated over 5 years ago on . Most recent reply
Condo investment property in Los Angeles, CA.
I’m considering of making my very first property investment here in Los Angeles, CA. (Korea Town) on a 1bed/ 1bath 700sq ft. My plan is to live in this unit for about 2-3 years, then renting this unit out because it’s central to a lot of the Los Angeles landmarks. Any suggestions, recommendations, opinions, on owning property in a major city?
TY for your time :)
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I live in Wilshire Park, which is KTown adjacent.... Unless this is an off-market listing, I would be very skeptical that any MLS listing in KTown Los Angeles is under market. Prime Ktown properties that are 700 sq ft will be pretty expensive....and the high rise condos will have large HOA dues...and any property in KTown will require a substantial downpayment to avoid negative cash flow. Prices drop a little when you get around to the LaFayette Park Pl area as that is getting closer to downtown and the neighborhood declines a bit.
With that said, I did the exact same thing as what you're planning, except I did it back in 2011 and I also bought multiple other K-town properties back then. It paid off handsomely, but that was because I bought at an extremely low price and we had sky-rocketing appreciation. I think if you're going to buy and live in the property for a while, you will be fine because living in K-town is a relatively unique and potentially rewarding experience. But just be aware that the rent to purchase ratios in Ktown aren't that great anymore. In fact, they're terrible and I would only recommend it for the well capitalized buyer who wants a safe place to park their funds.