Real Estate Broker · Los Angeles, CA · Member since 2013 · 33 posts · 2 votes
I've been running numbers for 2-4 units in the Mid City or more West Adams areas and found a few promising opportunities. What does the BP community think about the area?
Sherman Oaks, CA · Member since 2014 · 3 posts · 1 vote
12y
Hi John,
Being myself quite new to the REI world, especially in the LA area, I won't be much of help although I was never able to find any good buy and hold properties in this area of mid city (permitting 10% cash on cash while paying mortgage).
However, you didn't state in your message what kind of opportunities you found and for what purpose : rehab (like your signature may suggest), flip, hold and rent ? I think this is key to determine if the area is good but here again more experienced BP members will probably be more of help. On a rehab side, I saw some good deal on paper.
Purely on mid city, I think this is a nice area with booming RE.
Real Estate Broker · Los Angeles, CA · Member since 2013 · 33 posts · 2 votes
12y
Thanks Joseph for chiming in! Currently looking to hold and rent as I agree with you regarding the rehab inventory.
I'm a novice as well so definitely appreciate the feedback. Hopefully there will be another LA meetup closer to the westside where we can all share some ideas.
I have a triplex in Mid-City. Several savvy RE people I know believe Mid-City is really ready to gentrify. Pico Blvd is coming into its own and that is the hottest area of Mid-City right now. Farther South, there are less current signs of gentrification. However, the area around the Culver City Metro Station is about to see a bunch of development and parts of Mid-City and West Adams are right up against this area.
However, this story is no secret as anyone with a map can tell what is going on or what is likely to happen here. Therefore, you won't find any 10% cash on cash deals unless you really market in a gem. I'd concentrate on value-add opportunities.
That is basically what I did. Found a property where someone had for some reason taken a 4bd and took out a wall to make it 3. I put it back up and got quite a bit more rent. The cash on cash return is still low compared to the middle of the country, but I am locked in for 30 years with a low rate, Prop. 13 property tax limits, and what I think is a pretty good future.