California - South Bay is it possible to invest here?

[Kenny Shiozaki]

Hi I've been trying to see if there's any single or multi unit family homes to invest here however nothing is even cost to the 1% rule and is more like 0.5% or perhaps even a bit less. I've been looking in Carson, Gardena, Torrance, Hawthorne, Inglewood and so forth. How are people able to buy property here and create some income? I have been looking out of state, but I wanted to do more local if possible since I live here. 

Any tips would be appreciated!

[Oleg Enik]

@Kenny Shiozaki After talking to many professionals in the field, I've realized that it is quite hard to find a deal that is close to 1% in Los Angeles. It is not really known to be a "cash flow" area, but more of a "appreciation" area. However, there are cities in the Los Angeles County that are cheaper than others. 

The truth is that you just have to keep looking. It is hard to find good deals, so just try different strategies and at some point, you will find a good deal. It could be an off market deal as well.

After talking to many investors who invest in multi family properties in the Long Beach and San Pedro areas, they told me that you have to find "value add deals". So a deal where a house or a residential multi family property is in a bad condition, you do some rehab work, which raises the value of the property. After that, you can raise the rents or sell it for a higher price. This strategy is often referred to as BRRRR on Bigger Pockets.

I am still fairly new to real estate investing so take my advice with a grain of salt. I am just telling you what other very experienced professionals and people in the Bigger Pockets forums have told me. 

Good luck on your search and just keep looking! Lmk if you have any other questions.