Help me analyze and compare two deals

[Andy Cape]

Hi everyone,

I am new to multifamily investing. Looking at two properties in Los Angeles, CA:

Property link

Property link2

What are the current market rents for these two locations? With the grim economic outlook in mind, how can my investment be effected? Based on the available data, it looks like there should not be too much damage.

Any thoughts?

[Don Spafford]

@Andy Cape Have you run any analysis for either of these? Do you know anything about the specific location? You need to provide more information on what you plan to do with it.

You can check on Zillow or rentometer to get an idea of rents in the area. Based off the listings for these I don't think either of them look good, but that is purely based on the information provided in the listings stating low economic growth and rent increase potential. Are you planning to do a Buy & Hold, BRRRR, or flip? A low income area for a new buy & hold at the moment would probably not be ideal if this is your first investment. At least until things can turn around. You want renters that can actually pay rent. If you plan to flip or BRRRR, home values could drop in the next few months so it may not be in your best interest right now unless you have a large cash reserves to use to sustain it for a long while. But even then, you will need to know the ARV for the area and what the rehab costs will be to know if it is worth the effort.

As to your question on how it can be affected, well worst case scenario, your tenants can't or won't pay rent and then you can't evict and when they finally do move out, you will likely have a very damaged property.