Los Angeles, CA · Member since 2016 · 160 posts · 21 votes
Hello, I've noticed that there are some deals in the valley area (Arleta, Pacoima, Sylmar) that have properties that could yield some monthly cash flow. Maybe a hundred bucks a month or so. What do you think about investing in C class neighborhoods? Is it a worth while investment to look into these areas for a 100 dollars a month? Will the hassle be too much to handle with the added risk of dilinquent tennants? I read that a lot of investors make sure their location is the best it could be when considering a property but what do you do when good locations are out of reach? Like in LA. Can you climb up with C class rental properties?
If cash flow is your goal and you can handle the extra demands of C neighborhoods then this is a valid strategy. I suggest looking for value-add opportunities such as disrepair, low rents, and other signs of poor management. You can usually fix these issues and these will provide an immediate boost to the property's value.
Also, I would say chances are good you can find some motivated sellers in these areas. Looking for obvious disrepair is one way. Another is to check on recent evictions. These owners will likely be receptive to offers.
Los Angeles, CA · Member since 2016 · 160 posts · 21 votes
10y
@Phil Hong Great thanks Phil. I suppose I should do more research before diving in but this is just an option I came up with since I don't have many other options available to me. It's good to hear that it makes sense. could be a way to build myself up.