Investor · Salt Lake City, UT · Member since 2016 · 28 posts · 2 votes
I'm an out of state investor looking for a SF, condo or townhouse, 2-3 bed, 2 bath, buy and hold 15-20 minutes from a good beach in a B or better area. I need to find an investor agent who has some patience; I need some some education on areas and prices as I'm hoping to find something that cash flows or at least breaks even. I also will need some recommendations for PMs to consider and whatever fixing is needed. I'm not sure the best place to start in the area, I have several buy and holds in other markets but I like to travel to LA and the appreciation is interesting (though with markets softening I'm projecting overall negative appreciation over the next few years). I was hoping to find an agent who filters out properties that don't make sense from a cash flow perspective unless there's a value add possibility. Slow moving short sales or other value options are great; open to any feedback or suggestions
@Bryce Carroll Los Angeles and the beaches here are great! It honestly depends on where you want to be but Manahattan Beach, Redondo Beach and down to Huntington Beach and Newport Beach are options.
All of these locations typically have very good appreciation and while the appreciation may not be as strong the next few years I think you're still in a good position from a long term hold perspective.
Depending on your needs and as long as your flexible we can get you something that is close to positive cash flow.
I'll send you a direct message and provide some ideas and recommendations.
@Bryce Carroll SF and OC/ LA are great areas for steady cash flow and they don't often depreciate as much as other areas in down turn but to break even or cash flow you'll need to determine how much you want to put down. Cash flowing with a 5or 10% down payment will be unlikely but if you're able to put down 20% or more you'll have more options. Have you thought about how much you'd like to put down?
Good question, I usually assume 20% minimum to avoid being upside down. I generally aim for the 1% rule to determine value. I'd hope that if I take my time I can get a unit at a 5, 6, or better cap rate (by buying at under market value or by value add).
@Bryce Carroll 20% is the lowest you'll likely be able to put down to pull that off but it's totally doable. Let me know if you want to look at the LA or Orange County area. I do this all day in SoCal.