Los Angeles Investors, how do you do it?

[Eric Ippolito]

I know LA is an appreciation market, but running through any deals’ numbers, whether single family, or multifamily, I can’t see how anyone’s not losing money unless they buy a property in cash.

In LA, the housing costs are outrageous, but the rent isn’t too crazy (not to say $2400 for a 2bdrm apartment is fun). But it barely can pay for expenses, management, and the mortgage and still cash flow. My own landlord owns several multifamily locations that sold for a few million (if Zillow can be trusted) and rents the units up to about $2400 and I wonder how he’s doing it.

So what’s the strategy?