Gardena, CA SFR Or Multi Unit?

[Ben Chow]

Hi,

I have a some funds and thinking should I invest in a single family and built an ADU ( prob is owner occupancy) or should I invest in a multi family? What do you think of Gardena, CA

I don’t want to invest in Los Angeles due to the rent control and evictions laws.
What are my others City options? If any developer knows of a good ROI in good school districts let me know ( Beach cities like Redondo etc.)

Any new meetups near Redondo area? 

Thank you!! 

[Clarence Johnson]

Hey Ben,

I grew up in Gardena and my parents still live there. Excellent market, centrally located, and in my opinion in the direct path of progress as Inglewood increases in demand and more tech jobs are coming to the Southbay. I always suggest starting with multifamily, it gives you an opportunity to use a 3.5% downpayment for a multifamily where if you start with a SFR you will usually not be able to get a bank to give you a low downpayment loan for a multi. Don't let rent control deter you from LA or multis, as we now have state rent control to cover cities with no rent control laws. Rent control is primarily a problem for people who buy without analyzing the properties and no plan to get the returns they expect, also if a tenant is paying mkt rent or a property is delivered vacant the new laws will have little impact on you. @Andrew Aladjadjian is correct re the new owner occupancy law, I would just warn that I have a few clients who built ADU's in LA (SFR) and now the cities rent stabilization unit is trying to call it a multiunit and apply rent control to their single family homes. Aside from Gardena, Inglewood still has opportunities , Hawthorne is well positioned with many catylyst for change, and San Pedro's water front development will be a game changer for their mkt.