Los Angeles multi-family Appreciation

5 Replies

Your betting on throwing 7's five times in row . . .  RE is cyclic and we do get down turns.

My advice is to look for properties which will bring a cash flow on day-1 (aka fully occupied multi-family unit).  

WHY? Because FMV may fall but until you sell it, it just doesn't matter. All the while, you keep making deposits at the bank

@Conor Murphy there will be a lot of different opinions out there, but it's really hard to predict the future.  As NA Beard said, you have to invest where it makes sense in the "now" as well.  Otherwise, you're just speculating on an unpredictable future.

If I had to bet, I'd go with Culver City and Inglewood.  And if you had asked about 10 years, I would be more comfortable with my bet.  

I like the economics, business environments, supply restrictions and general lack of sexiness these areas have today.

With all that said, I think even these areas are generally over-priced today.

That is quite a loaded question! I understand the need for the question though if your looking more at the appreciation rather than cash flow.

I would look at a School Report to get pick out neighborhoods that are in high demand and in your price range, and then focus on those areas. This can narrow down your search quickly, and great schools are a good place to invest.

I would say the secret is the Valencia/ Santa Clarita area. Excellent school district great affordable housing market and i forsee excellent appreciation with all the new development in that area