Fix and flip investors pulling back in LA?

[David Varvaro]

Just curious to see what most Los Angeles area investors are looking for these days. I've noticed a significant change in the demand for fixers in the LA area over the last year. A year ago, you could list anything that was a fixer and it would sell with multiple offers over asking within a day.  

Now most of my investor clients are passing on most traditional fix and flips even off market properties with nice spreads that they would have swooped up year ago. Almost all of them have shifted to higher end markets and are only buying complete tear downs and doing new builds or smaller MF complete rehabs.  

The market has softened somewhat but there is still a high demand in most of the  entry level neighborhoods.  Just wondering what other investors are focusing on in the LA area.

[Julian L.]

I haven’t noticed a difference at all. I’m in south LA. A flip tha was purchased in Feb for $499k just sold for $790k.