Wondering about the Palmdale/Lancaster Area

[George Torres]

Hey guys, I'm in the process of getting pre-approved for a mortgage and I'm strongly considering purchasing my first rental property in the Palmdale/Lancaster area... Truth be told, It's really one of the only areas I can afford to invest in. Does anyone have any helpful info or advice for a new investor in that area? Is it a good place to invest in? Any help would be greatly welcome. Thanks!

[David Faulkner]

I've invested in SFR rentals there. Do you plan to move into it, rent it, or flip it? I agree tenant selection is key, so is neighborhood selection, and those two tend to go hand in hand. West side is the "high end" ... central is the ghetto (say 10th st East - 10th st West, 1950s dumps) ... far east side (20th east and on) is a mixed bag. I buy very selectively on the far East. 1980s-1990s, 3/2/2 SFRs are my "sweet spot". Not too ghetto, not too fancy ... just right, for me at least. Prices have gone up, but still relatively inexpensive and still possible to achieve reasonable cash flow on a good deal.

Long term appreciation won't likely be as good as LA proper. Then again, if Aerospace grows significantly, the AV will be rockin'. Lockhead Martin, Northrop Grumman, General Atomics, NASA Dryden ... all in East Palmdale. Northrup just won multi billion dollar next gen steal bomber contract; will be assembled in East Palmdale and likely test flights at Edwards AFB just north.  On the other hand, many up there are hand-to-mouth, so when it tanks it tanks hard, so make sure that whatever you get you can afford to hold.