PCSing to Los Angeles

[Ryan Anderson]

I recently found out that I will be PCSing to Los Angeles around the end of April/beginning of May. My wife and I would like to purchase a home, that's 1500+ sq ft, that we can rent when we leave but we're worried that there won't be much in our price range, keeping our monthly payment under $2500 including morgage, insurance, and taxes which I believe translates to about $400,000? The base is in El Segundo and from a quick search it didn't look like there was much in that area or surrounding areas. Also, I don't know the neighborhoods well enough to know which ones are good and which ones aren't so good. I would be happy for any suggestions on good areas or any other suggestions. 

[David Tipton]

First off, congrats! El Segundo is a great area to work.  I used to work there myself.  Unfortunately, there won't be anything there in your price range.  Last time I checked a house there was going for at least twice what you're looking to spend.  Neighboring Manhattan Beach is the most expensive area in terms of price per square foot in Los Angeles County, so it's not looking good in that direction.  Going north, there are some fairly affordable condos in Playa Del Rey, but they will be much smaller than 1500 sq. feet.  Like most people in LA, you will probably need to commute to get the type of house you're looking for or adjust your expectations.  The housing market in LA is ridiculously hot right now, but perhaps that will change by the time you move.

If you're stuck on those numbers, I would consider Inglewood where you might be able to get close to what you're looking for in terms of price/square footage.  It's traditionally a rougher area, but the Forum has been revitalized in recent years as a music venue and there are approved plans for an NFL stadium and complex there.  (Keep in mind, no guarantee it will be built or that an NFL team will come).  It would be close enough to El Segundo and has some long-term upside in my opinion.  Just something to consider but obviously you would need to put boots on the ground and see if it's a place you could live. 

Torrance/Carson/San Pedro may also be options, but will probably still be difficult to find the right deal.  West Adams/Midcity is also close enough and is undergoing revitalization, but may already be getting too pricey.  Otherwise, you're probably looking at a long commute or a condo somewhere.

If you have other questions about LA, let me know and I can give you my take on it.