Single/Multi family property location/areas suggestions for first time buyer in Los Angeles (Sherman Oaks)

[Eldar M.]

Hi BP users,

Being involved in the pod casts, forums, and the whole learning process still did not help me to choose the right area to invest in as beginner investor .

I am a first time buyer, waiting for too long to pull the trigger on my first property. I would really appreciate some insights and recommendations about areas where I can be comfortably started my real estate investment career.

-I want to be able to manage my own property.

-I am still not sure about the purpose, it could be a flip project, or just holding for a short period to generate some positive cash flow.

-Willing to travel up to 1.5 hours away from Los Angeles (Sherman Oaks, SFV)

Thank you

[Chris G.]

There are plenty of duplex, triplex available in the central LA area (east/west/south of downtown LA) that have good numbers -- especially with an owner occupant for buy and hold - you could also get them rehab'ed & put tenants in them for a value appreciation play and flip them to another investor - though this may take some time to find the buyer if you don't have connects to investor buyers in that market.

In regards to the West Valley area (Sherman Oaks, etc) ... that area is full of competition and they are doing stupid, stupid things.

First they show up like sharks in their Land Rovers, Merc S Class, etc... thats all fine and dandy, I'm showing up in my M5 or Ferrari anyways too... but then they do stupid things like grossly over-offer and over pay for the properties and either 1) make small margins or 2) do crappy rehabs and make a little bigger small margin.

I've decided to let them play with each other, and found better opportunities with bigger margins in the same general area (just not the higher end west valley area).

West Valley has higher buy-in costs ($400-$500K purchase for a fixer needing $60K) and resale around $600K.... I'm getting properties at $300-$350K + $25K - $60K rehab) and selling for $450-$480K in the area I'm currently focusing in.
I'm about 2 weeks away from selling a house I bought for $311K and put in less than $40K in rehab for $460K and had NO competition in buying, even with it being listed on the MLS.