Los Angeles: Newbie trying to make the numbers work.

[Jonathan Tea]

Hi all,

Like many other desirable areas across the country, I'm having difficulty finding a property where the numbers make sense (1%/50% rule).

The closest that I've found are in class C neighborhoods, near Inglewood.

Hypothetically, if given the opportunity, would you invest in Property A or Property B? Keep in mind, property A is only 30 minutes away whereas property B is 2 hours away. I'm trying to decide on where to buy my first property.

Property A: 
South Los Angeles (Compton/Lynwood/Huntington Park) area
- Class C
- $300,000
- 3br/1ba
- 1000 sqft

Rents go for about 1800-2000 in the area.

Or

Property B:
Lancaster/Palmdale Area
- Class B/B+ 
- $250,000 - $300,000
- 3br/2ba
- 1500 sqft

Rents go for about 1500-1700 in the area.

Most of these numbers are pulled from Zillow so they're probably off. What do you professionals think?