All Forum Posts by: Catherine Underwood

Thanks this is really useful, and like you said, i wouldn't have known to ask.

Looks like I am going to be doing more research! 

@Jordan Feiner @Stephanie Trevizo

By Vacancy, do you mean how often the property will be vacant? So 10% means that it will be empty for 10% of the year? 

@Brett Goldsmith  @Stephanie Trevizo @Christina Peterson @Gene Hacker

Thanks for all the help! You have all given very good advice, which I greatly appreciate.

_______________

Stephanie Trevizo said:

Gene Hacker said:

These are both good points.

What sort of strategies can I use to assess if a neighbourhood’s lack of safety would be a barrier to investing?

I’ve checked the ratings on Best Places, City Data and Street Advisor. The data given for the areas of LA I am looking at (such as 90001, 90002 & 90011) aren’t that great. But I know such data gives an overview of a whole area, and so may be misleading for individual spots.

When I visit these areas, are there any checks I can do to see if the lack of safety would result in a problematic investment?

Also what strategies can I use to assess the possibilities of these areas becoming gentrified?

_______________

Gene Hacker said:

I looked for properties that were for sale in these areas and then looked at properties being rent in the same neighbourhood (or 1 mile of the same neighbourhood if there wasn’t any property available to rent in the same neighbourhood). The monthly rent didn’t seem that great in proportion to the price of the property. Would you recommend giving these areas another look?

_______________

Christina Peterson said:

Yup, I got a bit mixed up about Redding, Chico and Sacramento. I am primarily interested in LA and SoCal, so those three Northern areas were an error. 

I am looking for Cash flow properties in LA and SoCal.

I’ve been doing research and have 3 questions. I am from England, so my questions might be culturally related.

Question 1: “Ghetto areas” in LA



I’ve found a few promising properties in LA zip codes that, according to Best Places & City Data, have high levels of violent crime.

In the UK, we’d call such areas ghettos and they are not worth investing in, as the tenants lack income, the monthly rental prices are low, and the property management companies provide a poor service.

However, I notice that these ‘ghetto’ LA Zip codes tend to have high monthly rental asking prices. There also seem to be several property management companies that service these areas and the companies have stellar reviews. The average income of people who live in these areas is also reasonable.

So are these ‘ghetto’ areas worth investing in? Also is there a definitive list of bad areas in LA? I found this list (and all the properties I have found are in those zip codes), but the author doesn’t state what his list is based on.


Question 2: Family homes vs apartments 

In UK cities, apartment tend to be rented out by younger people. They usually stay for 1 to 2 years before moving on. They don’t tend to be so fussed about the condition of the property, as they are desperate for housing.
Family homes tend to be rented out by families who usually stay for 5 to 8 years. They are more fussed about the condition.

Is it the same in LA?


Question 3: Areas outside LA 

I have been looking at Riverside, Redding and Sacramento and these areas seem to have potential.

I have seen people recommend Niland, North Edwards, Chico, Palmdale and Bakersfield but from my initial research, these seem like duds.

Anyone have any other recommendations?


Background information

I know, I know, you can’t get cash flow properties in LA/SoCal and it’s better to wait for the LA property bubble to burst.

But as mentioned I live in England. I am going to an extended family function in LA & SoCal. There’s going to be a lot of waiting around, so I thought I’d use the time to look at properties.