Investor · Los Angeles, CA · Member since 2015 · 45 posts · 7 votes
I have probably looked at hundreds of MLS listings over the past couple of years. Interested in acquiring another residential multi-family (2-4 units). Rarely if ever do I see anything that cash flows. Gross rents - Principle/interest/taxes/insurance generally results in a loss of $1-2k or more monthly.
I own properties in the same area that I purchased many years ago which cash flow remarkably well. Is now no longer the right time to invest in southern california? Or am I not looking in the right places for deals?
Property Manager · Los Angeles, CA · Member since 2022 · 590 posts · 463 votes
2y
Cash flow ain't the only way to make money with real estate. Look into MTRs if you want cash flow, but LA is none for not being a cash flow market. Anything is possible with the right deal of course.
Investor · Los Angeles, CA · Member since 2023 · 165 posts · 65 votes
2y
Quote from @Account Closed:
I have probably looked at hundreds of MLS listings over the past couple of years. Interested in acquiring another residential multi-family (2-4 units). Rarely if ever do I see anything that cash flows. Gross rents - Principle/interest/taxes/insurance generally results in a loss of $1-2k or more monthly.
I own properties in the same area that I purchased many years ago which cash flow remarkably well. Is now no longer the right time to invest in southern california? Or am I not looking in the right places for deals?
For certain investors, it's acceptable if their investments don't generate immediate cash flow during the initial years, as long as the long-term appreciation increases their wealth.
For example, if you experience a negative cash flow of $2k annually for six years, that totals $144k However, if your property's value increases by $500k over the same six-year period, you're now $356k wealthier.
If your primary goal is to build wealth, then enduring a few years of negative cash flow might not be that bad.
Another option is to consider long-distance investing and targeting areas with better cash flow potential.