Los Angeles: Where do I buy?
For those of you who are familiar with the LA area, I'm trying to buy my first place at 31 years young. I work in Santa Monica, currently live in Venice and rent for $1495/month.
I'm not even close to buying anything in that area - I'm totally priced out. Everyone says to buy the worse property in the best neighborhood, but I can't even find dumps or rehabs in Santa Monica / Venice for under $750k.
My budget to purchase is $500k - $650k and I'm looking for a 2 bed / 2 bath, so I can rent out one of the rooms to help me with my mortgage payment. I have $150k saved to use as a downpayment, closing costs and / or fix a place up.
Ideally, I'd like to purchase a house for $500k, use $100k down, have a monthly mortgage of around $2200 and put another $20k - $30k in repairs, fix up, live and get a roommate and then sell in a few years. However, it's looking like I'll have to be in less desirable neighborhoods to accomplish that. Otherwise, I could go condo route, but then I'm stuck paying a $300 - $500 HOA fee.
I'd like to keep my commute time to 30 minutes during rush hour and would like to buy in a "up and coming area." What do you think are the neighborhoods that will be the "next big thing" somewhat near the Westside? I've been looking at Playa Vista, Ingelwood and Mid-City. I'm almost priced out of Mar Vista and I'm really not interested in Palms.
I'm even open to Sherman Oaks, Topanga Canyon or some other further areas, but really not looking to sit on the 405 for an hour each way to work.
Does anyone have any ideas on where to look and buy?
If you're looking for a good Los Angeles real estate investment area, where you can still buy relatively affordably, get great value for your money, and before everyone else catches on and the area sky rockets (it WILL happen) - TUJUNGA. Seriously!
Originally posted by @Julian L.
For those of you who are familiar with the LA area, I'm trying to buy my first place at 31 years young. I work in Santa Monica, currently live in Venice and rent for $1495/month.
I'm not even close to buying anything in that area - I'm totally priced out. Everyone says to buy the worse property in the best neighborhood, but I can't even find dumps or rehabs in Santa Monica / Venice for under $750k.
My budget to purchase is $500k - $650k and I'm looking for a 2 bed / 2 bath, so I can rent out one of the rooms to help me with my mortgage payment. I have $150k saved to use as a downpayment, closing costs and / or fix a place up.
Ideally, I'd like to purchase a house for $500k, use $100k down, have a monthly mortgage of around $2200 and put another $20k - $30k in repairs, fix up, live and get a roommate and then sell in a few years. However, it's looking like I'll have to be in less desirable neighborhoods to accomplish that. Otherwise, I could go condo route, but then I'm stuck paying a $300 - $500 HOA fee.
I'd like to keep my commute time to 30 minutes during rush hour and would like to buy in a "up and coming area." What do you think are the neighborhoods that will be the "next big thing" somewhat near the Westside? I've been looking at Playa Vista, Ingelwood and Mid-City. I'm almost priced out of Mar Vista and I'm really not interested in Palms.
I'm even open to Sherman Oaks, Topanga Canyon or some other further areas, but really not looking to sit on the 405 for an hour each way to work.
Does anyone have any ideas on where to look and buy?
Originally posted by @Larry Wilson:
If you're looking for a good Los Angeles real estate investment area, where you can still buy relatively affordably, get great value for your money, and before everyone else catches on and the area sky rockets (it WILL happen) - TUJUNGA. Seriously!
Originally posted by @Julian L.For those of you who are familiar with the LA area, I'm trying to buy my first place at 31 years young. I work in Santa Monica, currently live in Venice and rent for $1495/month.
I'm not even close to buying anything in that area - I'm totally priced out. Everyone says to buy the worse property in the best neighborhood, but I can't even find dumps or rehabs in Santa Monica / Venice for under $750k.
My budget to purchase is $500k - $650k and I'm looking for a 2 bed / 2 bath, so I can rent out one of the rooms to help me with my mortgage payment. I have $150k saved to use as a downpayment, closing costs and / or fix a place up.
Ideally, I'd like to purchase a house for $500k, use $100k down, have a monthly mortgage of around $2200 and put another $20k - $30k in repairs, fix up, live and get a roommate and then sell in a few years. However, it's looking like I'll have to be in less desirable neighborhoods to accomplish that. Otherwise, I could go condo route, but then I'm stuck paying a $300 - $500 HOA fee.
I'd like to keep my commute time to 30 minutes during rush hour and would like to buy in a "up and coming area." What do you think are the neighborhoods that will be the "next big thing" somewhat near the Westside? I've been looking at Playa Vista, Ingelwood and Mid-City. I'm almost priced out of Mar Vista and I'm really not interested in Palms.
I'm even open to Sherman Oaks, Topanga Canyon or some other further areas, but really not looking to sit on the 405 for an hour each way to work.
Does anyone have any ideas on where to look and buy?
Hey Larry,
I was in your same situation a couple years ago and I decided to buy a small property in Topanga Cyn and build a custom affordable modular home and got it built for under $150,000 in less then 6 months time it was the best thing I've ever done and I could resell my home rite now for almost double the price I paid and my home is as nice or nicer then any traditionally built new home in the local area. So I think you would be very interested in a prefab or modular home since you can build a 1500sq foot for under $140,000 that's less then $100 a square foot to build your own custom home. My company builds amazing affordable and green custom prefab modular homes that can be built for less then half the cost and half the time of a traditional buikt home with way less regulations and permit costs it's the future of affordable housing and we are here to answer and questions you have and I would love to show you more information on our affordable homes and past projects we have built. I look forward to hearing back from you. Thanks so much
Conor Colburn
I would consider the implications of rent control. From my understanding Santa Monica is the worst place to be a landlord. Have you considered an FHA loan on a duplex or triplex? You have a good downpayment, so couldn't you get a duplex or triplex with that much downpayment and still have your targeted monthly payment at around $2200?
I like the suggestion of live where you are happy (keep renting) and look for alternatives to growing the money you would be putting towards down payment and rehab.
The great thing about our business is that there are SO many options. Don't pigeonhole yourself into a property in an area you don't like, with a horrible commute, dealing with tenants, and living in a rehab zone.
There are many on BP who can help flush out great strategies.
If you were to invest in the Midwest , you could buy to your hearts desire, buy and hold and have a property manager. You just need the right person on the ground where you are investing. Jim Holmes
May I suggest that in addition to where to buy, you give deeper consideration to why, when, what, and how ... answer to these additional questions may help clarify and overcome challenges with where. I could spell out specifics, but believe it better that you think through and discover all those answers for yourself.
There are so many great neighborhoods within a short commute from Santa Monica that are within your price range. You should list what you're looking for in a neighborhood. Many of the neighborhoods mentioned are so different from one another. Do you want to be walking distance to fun restaurants, bars and shops which you're probably used to in Venice and Santa Monica? Is beach life important to you?
I can understand why you're not finding anything in Playa Vista, but you should look into Westchester (and Playa Del Rey) which @Bill Maloney mentioned. With Playa Vista next door, LAX 10 min away, close drive to 405 and 105, and Playa Del Rey beach not far away, it has a lot of room for appreciation. I personally moved the Westchester/PDR in May and I'm finding it has everything I need in a neighborhood. I'm surprised how much lower home prices are here than other beach areas, but I think that will change once Google breaks ground. I'm actually looking for an investment property in the area.
Someone mentioned Inglewood, which I think is still too rough. I don't see much there until Inglewood can secure an NFL team.
I'm going to come out and say that I'm not a huge fan of 90019. This is why I ask what you're looking for in a neighborhood. I was looking in that area when I was looking for my first 4-plex in 2013. I wanted a neighborhood that was lively and walking distance to fun restaurants, bars, and shopping. I did not find this in 90019. If you aren't looking for the same type of neighborhood that I was, then you may find a home within your price range there. @George Margareti's numbers sound good, but that's most-likely not his first rodeo. I wouldn't expect this type of result on your first purchase. He has the experience to know how to go into a changing neighborhood and rehab a property to make a profit. I don't know George (I'm sure I could learn a lot from George), but this is my inkling.
One last thought--think about whether you will miss the beach if you move to the valley. You may want to consider the pros and cons on moving to the valley after living on the westside and see if that new lifestyle fits your personality.