Price to Rent

[Alexandru Guna]

Hello Everyone,

I'm a newbie at real estate investing and have been looking for an excellent deal to purchase in the Los Angeles area. However, to no surprise to anyone, LA is a saturated and overpriced area.  After a few months of searching, I realized that finding a good deal is quite challenging. Therefore, I have decided to change strategy and focus on LA's outskirts. There are many factors that I was taking into consideration in my decision to purchase an investment property. Still, some of the factors I prioritized are the price-to-rent ratio and decent location with the potential for future appreciation in property value.   I started doing some research on my own and hit a wall. I wondered if anyone had any recommendations on a LA outskirts area with an excellent price-to-rent ratio and potential for future appreciation due to population growth and economic opportunities.  Also, I ran it by the agent I was working with and was not getting much help.  So other than finding another agent, I was wondering, even if there are no specific recommendations, maybe someone could guide me in the right direction or provide resources to further research I can do on my own.

Thank you, everyone, and I appreciate your input and am sorry for the longwinded question.  

[Hamp Lee III]

Welcome to BP!

I'm originally from Compton, so I understand the challenges of finding an affordable deal.

Not sure about your price range, but have you gone out as far as Fresno or Bakersfield?

Also, search cities on the way to Las Vegas, including Vegas.

One book to help you research a city outside of what's in the BP bookstore is Buy It, Rent It, Profit!: Make Money as a Landlord in ANY Real Estate Market by Bryan M. Chavis: https://www.amazon.com/Buy-Ren...

Here are a couple additional links about Bakersfield and Fresno:

https://www.limaone.com/should...

https://www.limaone.com/invest...

I hope this helps.

I wish you all the best!