Highland Park Triplex - My calculated numbers

[Amanda Cheng]

Hi there, looking for some help analyzing my numbers. I've plugged values into the Rental Property Calculator, and I am reviewing the results. I'm wondering - what do you look for when you're analyzing these reports?

Also this is my first real estate investment, and I haven't decided whether I want to do a short term buy for appreciation via BRRR or a long term hold for appreciation of the land. This would affect the neighborhood of the property that I am purchasing from. Highland Park is already a market that's already plateaued for the most part -- it's great because market rents are higher than most other adjacent areas in Northeast Los Angeles, but I'm worried my property won't appreciate as quickly. What are our thoughts on buying for passive rental income vs. buying for appreciation and long term hold, specifically in the Los Angeles market. Also considering that I am a first time investor, looking to build and grow my real estate portfolio; rather than stop at just one property.

Thanks in advanced!

[Will Barnard]

Your report link does not work on my end.

At any rate, I know the highland park area fairly well as I have 2 ongoing development projects there plus previous. I am not sure I 100% agree that there is no more room for appreciation there. This area continues to have more and more redevelopment, new development, and many more rehabs ongoing bringing this area up and up. Until the market softens or slows, I don't see any reason why it will not continue.

That said, you need to decide or inform us of what type of investor you want to be, i.e. - your goals. If cash flow for income is your main desire, then you need to find deals well under market with value add opportunities to gain the highest rents possible to make it cash flow. Expecting cash flow from the start in this area may be very difficult to accomplish. Many investors in So Cal expect appreciation, both forced and market to bring in the full returns as cash flow is limited most of the time with new buys. If you bought in 2013, then different story as those are likely cash flowing aplenty now!