Seeking advice : New investor in Los Angeles Market

32 Replies

Hi BP members! Hello! I'm very new to the industry and trying to seek advices in rental property investments . From my brief study, cap rates ranges from 3.5~4.7% in general. Not sure if it's good time to invest or hold capital for downturn. New tax rate will bring down to 20% for LLC so it's a good thing but the price is high so wanted to see if it's better to hold my hat and learn more till we have the down cycle. In the mean time, I could flip few $500k houses to generate profits. Any comments or advice will be greatly appreciated. Also, is there a meet for Los Angeles BP members? Thank you very much!

Welcome @Colin Lee ! I am also located in Los Angeles. Bruce Norris of the Norris Group will be speaking at the 2018 Real Estate Summit in Glendale on January 10th. His presentation that will help you out is entitled, "Stay Put or Cash Out in 2018? Critical Insight for Real Estate Investors in 2018" There are many speakers and booths and it's free to attend. Here's the venue and agenda: http://www.roberthalltaxes.com/expo2018/

I'm not aware of any BP specific meet ups but here is a great list of meet ups in California: https://www.biggerpockets.com/rei/california-real-estate-investment-clubs/

Happy investing and feel free to reach out.

Hi Kuba These info really helps :) Thank you very much! 

I going to way  in here. The flipping at that price point makes sense as that range is so demanded and movable and I guess if the market goes sideways one would think very rentable. Right now we are in a real weird spot of the market. This stage of the cycle one must think longer term and really research areas that can with stand a downturn so value add is real key.

In general if you try to "time the market" it won't work out, but if you are careful about where you put your money you should do well over the long run.

Originally posted by @Jo-Ann Lapin :

I going to way  in here. The flipping at that price point makes sense as that range is so demanded and movable and I guess if the market goes sideways one would think very rentable. Right now we are in a real weird spot of the market. This stage of the cycle one must think longer term and really research areas that can with stand a downturn so value add is real key.

Hi Jo-Ann

Thank you for your thoughts. I am aligned w your view at the moment. Especially w the new tax law that gives up $750,000 loan, I think smaller houses wont be affected much. But as a Rent property investor, getting to 20% will be very beneficial but still think I want to wait and see how the market behaves. Have to work hard to keep myself from buying just a good deal. Want to have great deal for long term goal. Thanks! 

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Hi Danny Farrell 

Thank you very much for the info 

Yes will connect! Talk to you soon 

Have a great weekend! 

I would certainly flip right now if you know how to over holding anything. Prices are horrible right now...I'd be shocked if you can get a 3.5-4.7% cap rate (where are you finding those?)

There is one group that meets in West LA the [second Saturday of each month?] in Santa Monica. It's led by @Jeff Greenberg . It's a cool one--very casual, everyone just mentions what they are working on, everyone can ask questions to anyone they want, great networking. Literally everyone is usually working on something different so lots of helpful stuff and ideas floating around. Jeff can add you to the mailing list if you want, I'm sure.

Flipping is a good avenue if you buy right. Let's connect. I work out of Corona in the Inland Empire.

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@Ali Boone Thank you very much for your info. I’m using LoopNet to find the ones that are at high cap rate. We can chat more. Sounds great on the Santa Monica meet ups. Thanks! 

Hi @Colin Lee , welcome. I am a new investor, too, house-hacking a duplex in South LA. Are you really finding potential deals in the LA area on loopnet? Plus, you mentioned taxes a couple of times - are the new tax laws so different that they will effect major change in investing strategies?

^_^ Thanks for sharing the info @Danny Farrell!

Originally posted by @Colin Lee :

@Ali Boone Thank you very much for your info. I’m using LoopNet to find the ones that are at high cap rate. We can chat more. Sounds great on the Santa Monica meet ups. Thanks! 

Oy, be careful on LoopNet! Come to one of the meet ups before you buy anything off of there. ;) 

@Ali Boone Hi Ali! Good morning! Nice to have some rain in LA Got it :) Can you have Jeff include me on the mailing list please? Thanks! Stay dry 

@Colin Lee , that's pretty awesome if you have the cash to flip a $500k home.

Another thing you can look into before doing your own flip is lending to flippers in the LA area and if they're willing (they should be...you're the hand that feeds them) tagging along to learn the ropes.  PM me if you have any interest in that.

@Logan Allec Yes just closed the escrow on my first flip today :) I'll PM you for more info Thanks! 

Hi @Ali Boone and all.

May I kindly request that you reach out to Jeff Greenberg for the details of the Santa Monica meetups (I am having trouble with some @ mentions on my mobile phone).

I thought I found it on meetup.com but it’s the wrong one.

Thanks

Originally posted by @Colin Lee :

@Ali Boone Hi Ali! Good morning! Nice to have some rain in LA Got it :) Can you have Jeff include me on the mailing list please? Thanks! Stay dry 

Yay rain! I came out to Big Bear to chase freshies on the slopes, but they are heavy and sticky. But hey, it's a start! Hey @Jeff Greenberg , Colin wants to be on your list :) 

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