Los Angeles Area Investors

[Tony Maldonado]

I am actively seeking my first investment property and in Los Angeles County. Issue for me is not a new one, the cap rates here are low, around 1%. What tips can you suggest for finding the gems in an impacted,

Sellers market like LA?

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Originally posted by @Tony Maldonado:

I am actively seeking my first investment property and in Los Angeles County. Issue for me is not a new one, the cap rates here are low, around 1%. What tips can you suggest for finding the gems in an impacted,

Sellers market like LA?

Hey Tony, yeah man LA is a bit tricky but not impossible. We focus on flipping in LA and buy our rentals in other areas. I know that might not help answer your question exactly, sorry. 

Now, if I really wanted to find cash flowing rentals in LA I would look for duplexes, tri or 4 plexes. House hack it if you can, get your mortgage paid by your tenants. Then trade up next year, and again the following etc. 

SFRs are a bit tight as you mentioned but again not impossible. Long Beach and other beach areas have 2-4 units that could work. 

Or if you just want cash flow, be a private lender on a few flip deals to get passive double-digit annual interest. Then as your bankroll increases, you will have more cash to invest with and buy those multi fam deals. 

Hope that brought a little value. 

Daniel