Cash flow is hard to LA..prices are too high to generate much cash flow. You could get 2 nice SFH in nice neighborhoods. SFH in nice neighborhoods with good school districts can easily go for over 3k/month rent. A 2-4 unit multi would be your best bet. I would still try a nice neighborhood though even though your paying a premium but you will get better tenants and better appreciation along the way. Appreciation is the game in places like LA or bay area. My monrovia duplex i bought for 665k in 2010 is now worth close to 1.2 milion so close to doubled. The rents were good and covered the expenses but not everywhere in the country will see a 2x increase in 10 year.
I would like to know your point of view on how you would maximize capital by focusing on cash flow.
With $350K and a desire for cashflow, I would buy as large a building as I could in South LA and have Action Management do the property management. I'd wait until we're closer to the eviction moratorium ending, though.
Cash flow is hard to LA..prices are too high to generate much cash flow. You could get 2 nice SFH in nice neighborhoods. SFH in nice neighborhoods with good school districts can easily go for over 3k/month rent. A 2-4 unit multi would be your best bet. I would still try a nice neighborhood though even though your paying a premium but you will get better tenants and better appreciation along the way. Appreciation is the game in places like LA or bay area. My monrovia duplex i bought for 665k in 2010 is now worth close to 1.2 milion so close to doubled. The rents were good and covered the expenses but not everywhere in the country will see a 2x increase in 10 year.
Cash flow is hard to LA..prices are too high to generate much cash flow. You could get 2 nice SFH in nice neighborhoods. SFH in nice neighborhoods with good school districts can easily go for over 3k/month rent. A 2-4 unit multi would be your best bet. I would still try a nice neighborhood though even though your paying a premium but you will get better tenants and better appreciation along the way. Appreciation is the game in places like LA or bay area. My monrovia duplex i bought for 665k in 2010 is now worth close to 1.2 milion so close to doubled. The rents were good and covered the expenses but not everywhere in the country will see a 2x increase in 10 year.
That is great, Completely agree, what areas would you recommend me to look for for multi-family units in Los Angeles?
I would like to know your point of view on how you would maximize capital by focusing on cash flow.
With $350K and a desire for cashflow, I would buy as large a building as I could in South LA and have Action Management do the property management. I'd wait until we're closer to the eviction moratorium ending, though.
Thank you for your comment, I will definitely take it into account. Would you then recommend a small multifimal unit of 2 to 4 units? And what areas would be the most suitable from your experience? Thank you
Rental Property Investor · Newport News, VA · Member since 2018 · 264 posts · 130 votes
6y
Hey Jorge,
This depends on your end goal. Single family homes/small multifamily in my experience = job even with a property manager (you always have to manage your property manager). The only passive investors are people who invest in real estate syndications as limited partners and people who own notes.
I recommend you read the Best Ever Apartment Syndication Book by Joe Fairless.