Where best to buy real estate in SoCal

Question

Greetings Everyone,

I am new to the real estate investing business and in search of some information.

I currently live in the Antelope Valley in Palmdale, CA. Since I am new, I do not have excess capital to purchase expensive properties like those seen closer to LA. I have been looking at areas such as Lancaster, Palmdale, Santa Clarita/Valencia, even some properties in the Apple Valley and Palm Springs area.

My goal is to purchase rather small single family residences (2-4 bd/1-3 ba) for something in the range of $100-200k. Depending on the market, I would either like to flip the properties or as a back up strategy rent them out to generate cash flow.

Where does it makes the most sense to implement my business strategy?

I greatly appreciate the advice!

Daniel Rosell · Answer

Hi David,  yes west of the 14 is always your best bet.  There are some areas on the west side that I consider a C neighborhood and usually steer clear.  It's all subjective and varies from investor to investor.

Erik Bottema · Answer

For cashflow, I'd stick to a 50's home in either east Lancaster or east palmdale. I prefer palmdale , however, id had friends with good luck in Lancaster too. I've owned in both and have always had more issues in Lancaster with tenants for some reason. My company still holds some properties but we mainly flip. If you have any decent flips in AV, please shoot me a message

Thanks,

Erik

Jo-Ann Lapin · Answer

Lancaster, plamdale, Palm Springs. Valencia may be too expensive

Account Closed · Answer

Awesome, I really appreciate it! I tried to send you a "note" (is that what direct msgs are called on here?) let me know if you didn't receive anything.

Account Closed · Answer

@Daniel Rosell As a new investor, I would prefer to invest in SFR's that require medium to a low level amount of rehab and could still generate cash flow if the property doesn't sell after the rehab. For me it's difficult to define my comfort level because I simply have not had the experience to really find my "sweet spot" in the market. However, I know what I would not be comfortable with. I wouldn't want to invest in areas with high crime rate (obviously), Section 8 housing, or properties with large amount of rehab required such as foundational damage.

Also, I see that your occupation is listed as a RE Broker. Is it worth getting licensed in California if you want to be an investor. From what I've read, being a licensed agent you need to work for a broker to perform RE activities. And in order to be a broker you need to have at least 2 years of experience. I was hoping you could offer your thoughts on the matter?

Account Closed · Answer

@Kevin Peguero @Jo-Ann Lapin Thanks for the info!

@Daniel Rosell I'm fairly new to the area, I relocated for work but from what I've heard West Lancaster/Palmdale and Quartz Hill are the best areas to invest. Can you elaborate on which neighborhoods you consider B,C, and D areas?

David To · Answer

Hi Daniel, what's considered a B neighborhood in Palmdale / Lancaster? Any homes West of the 14th freeway???

Daniel Rosell · Answer

I would suggest starting of with a B neighborhood and a property that may just need some cosmetic items.  That's how I started and I had a mentor to help me along the way with tenant questions and repair issues.

With regards to getting your RE License it depends how active you are going to be.  There are some holding costs to keep your license active.

Whenever you arr free give me a call sometime and we can go over these items.

Daniel Rosell · Answer

Yes the Westside for Lancaster, Palmdale, and Quartz Hill is where you will find your best areas.  However on the westside there are some neighborhoods that can be a little rough.  For example the "trend" area at 40th west and L has always had its issues.

Jo-Ann Lapin is correct that there are old and new neighborhoods scattered all over the valley.   Since the valley is so large its difficult to explain which areas are best for investing.  It would be easier to point you in the right direction if you explain what your comfort level is as an investor.  I personally only like to invest in B neighborhoods, but have clients who are comfortable in the C and D neighborhoods.

Where best to buy real estate in SoCal

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