Hello. I am new in BiggerPockets and believe this is good and trustworthy place to communicate with experienced investors. What are the hot real estate areas in Los Angeles and which type of investment properties are better? Thanks
There a lot of hot areas in LA and a lot of investment options. What’s are your long term goals and what type of returns are you looking for? Providing more specific info would help narrow down the best answer to your question.
Thanks for your quick respond. I am new in investment although have a lot of book knowledge))) There is nothing specific that I have on my mind, but I am looking at rental property investments
I always appreciate wise people advise and would like to hear from them. What are the best ways to do if you have home equaty loan on your primary residence and wanna use it for investment. I know there are many ways but I am just wondering what is the best way. For example how would you use $$300,000 home equity ?
@Hovhannes Hunanyan there are a few good areas right now in the Los Angeles area that are good investments.
My two favorite places for investors are in Inglewood and Hawthorne. The gentrification process started in Inglewood two years ago and it will be the next Culver City in 6-8 years. Hawthorne will feel the effects of the revitalization and gentrification of Inglewood and will be the next Westchester.
There are numerous advantages to both Inglewood and Hawthorne.
- no rent control
- "path or progress"
- ability to buy relatively inexpensive compared to the greater Los Angeles area
@Michael T., that is very good info! Tagging this post for later....
@Hovhannes Hunanyan Culver City has gone a long way. Jefferson Park bear USC. And that whole area are places to consider. A lot of older places though so they won’t have central air maybe and also your tax assessment will be sooo much higher then your neighbors but that shouldn’t make or break you. The area has been booming with creative people working for all these industries in La.
I’m not totally up to date on the LA market but I did grow up here and I’ve watched a lottt change
LA is the worst market. So much foreign money investors park their money on 2 cap properties it is overpriced . You can make a blind toss in the map and can do better for your return than LA
But then again you can always find a deal in any market, question is if you where to look and how to look...
What are the best areas in LA for investment?
If Ingelwood is on the rise, I'm wondering if Compton is too
@Daniel DiPiazza there have been increases in Compton over the last few years which is great but it has not been as significant as Inglewood. South Los Angeles near USC and further south will continue to have good appreciation along with locations closer to the new stadium in Inglewood.
I believe strongly that Compton is a late bloomer in regards to livability but nonetheless is a strong contender for a 10-20 year outlook for ROI. I've seen enough flips and rentals in the worst parts that are bought/ occupied relatively quickly. Low C and D tenants are moving further and further away from Los Angeles. Compton will be the next Inglewood in the next 10 years.
Agree about Compton, been watching it for the last 6-7 years. Inglewood, Hawthorne, Mid City, View Park, Adams, MacArthur Park, Korea Town, Lemiert Park, all around USC, south of Downtown, Frog Town, Boyle Heights, Highland Park, parts of Van Nuys, Sun Valley. Throw a dart
We have tech companies, two pro football teams, a huge stadium mega dev going up, more talk about the south LA area (think around the Forum) and the purple line going in and more planned over the next 7-8 years, and we will host the Olympics in 2028. LA is in high demand and as someone mentioned, there's a lot of foreign money coming in, which is tightening supply and driving prices up even more. They have the money to sit on property for the next 10+ years for the payout
There's no best, otherwise we'd all be doing it! Find out where you want to specialize, understand the area, zoning, your future plans, RSO, future plans for the area, and devise a strategy based on information.
Absolute best area for short and long term investment if you have enough capital is San Pedro. Last affordable coastal property in Los Angeles. over 1Billion dollars worth of construction in or around the water front is set to begin or be completed in 2020-22. Property that is 500K now will double in 5 years or less. Urbanize LA Articles on San Pedro
Hawthorne, Inglewood and Compton are all still a gamble. One that, if I had the cash, Id be willing to take but could still go either way.... especially in certain pockets of those places.
I favor Inglewood but agree strongly in regards to San Pedro and Hawthorne. Sold my sis and her husband a San Pedro duplex a few years ago when they were priced the same as Watts.
I would agree San Pedro is the next best city to buy in. There is a lot going on in San Pedro.
Great thread! Starting to look at San Pedro and Hawthorne. Thank you!
@Clarence Johnson I’m hunting for my first purchase and my fingers are crossed for a duplex deal like THAT! Lol
@Mo Brentwood Hi Mo, I’m new to the community and looking to house hack in San Pedro. Thinking of purchasing 2-4 units this year. I’ve read on other forums that it is tough with rent control and tenants who love Sam Pedro and never leave. Do you agree with this?