Does anyone have any experience investing in these cities? I live about 20min South of Downtown L.A and prices are way too high. Any advice? Looking for my first investment. Want to invest in multi-family properties.
@Erika G. in that case let's start with your expectations for buy and hold and see if it is a viable market or if you want to invest in other states or adjust your search criteria. Unfortunately I've seen too many people from LA or OC thinking that the inland empire will give Midwest-like returns and that just isn't the case as much as I might like it to be. In my opinion goals/ expectations are the right place to start with any market.
Be sure to run the numbers. It's cheaper out there than in LA, but that doesn't mean there will suddenly be cash flow. If you're talking about rentals, at least.
Does anyone have any experience investing in these cities? I live about 20min South of Downtown L.A and prices are way too high. Any advice? Looking for my first investment. Want to invest in multi-family properties.
Erika,
Where exactly do you live? If somebody asked me where to find the most affordable and promising multifamily investments near LA, I'd say about 10 minutes south of Downtown!
Be sure to run the numbers. It's cheaper out there than in LA, but that doesn't mean there will suddenly be cash flow. If you're talking about rentals, at least.
I appreciate your advice, Ali! You make a great point.
Does anyone have any experience investing in these cities? I live about 20min South of Downtown L.A and prices are way too high. Any advice? Looking for my first investment. Want to invest in multi-family properties.
Erika,
Where exactly do you live? If somebody asked me where to find the most affordable and promising multifamily investments near LA, I'd say about 10 minutes south of Downtown!
Best,
Jon
Hi Jon, thank you for taking the time to reply to my post. I live boarder-line Huntington Park and South Gate. I do have seen a lot of available multifamily's meeting my price and sqft criteria, but towards compton,florence-graham area, and those surrounding L.A cities. The problem with this, I've heard people say that "ugly areas, attract ugly people", and this is my biggest fear going into those areas.
Does anyone have any experience investing in these cities? I live about 20min South of Downtown L.A and prices are way too high. Any advice? Looking for my first investment. Want to invest in multi-family properties.
Erika,
Where exactly do you live? If somebody asked me where to find the most affordable and promising multifamily investments near LA, I'd say about 10 minutes south of Downtown!
Best,
Jon
Hi Jon, thank you for taking the time to reply to my post. I live boarder-line Huntington Park and South Gate. I do have seen a lot of available multifamily's meeting my price and sqft criteria, but towards compton,florence-graham area, and those surrounding L.A cities. The problem with this, I've heard people say that "ugly areas, attract ugly people", and this is my biggest fear going into those areas.
Erika,
For sure, ugly places attract ugly people. I'm in no rush to invest in the worser parts of Compton, etc.
That said, there are decent areas within lower-income neighborhoods worth exploring. And in LA, it's really a block-by-block proposition.
For example, I've been keeping an eye on this low-cost triplex south of downtown:
It cashflows, and the immediate submarket looks pretty decent. Yes, it's a lower-income area, but there appears to be a lot of families and small businesses around and not too much graffiti. Things like this make a block or small area stand out.
Here's another promising listing at a higher price point:
It not as great a deal and doesn't produce as much cashflow, but this is a great block. A fourplex sold down the street a few months ago; when both were on the market, I cruised by to check them out. This one block of E 59th Pl. just happens to be one-way, and something about the block is much more pleasant than the blocks surrounding it. It's not far from major avenues, but definitely not too close, and the mall a few blocks away has a Starbucks, a Chase bank, a CVS, and a supermarket. I think this is a solid longterm investment.
The money is made in finding the overlooked gems or the properties just outside of the already-gentrified area.