All Forum Posts by: Michael T.

@Kyle Marcs welcome to BP!  Congratulations on starting your real estate journey and I'm confident you'll do well!

Yes, the South Bay does have some good up and coming projects.  Depending on what you're looking for there are locations in Hawthorne, Torrance, San Pedro and Long Beach that you can get some good deals on multi units.

When you're ready to start looking please feel free to reach out.

@Eric Ippolito yes, quite often in the Los Angeles market investors will lose some money on a monthly basis, however, over the long term if they purchase the right deal they will make more in appreciation compared to an out of state cash flowing property.  

I've definitely made more money in appreciation in Los Angeles compared to out of state cash flow, however, you do have to be patient for 3-4 years to reap the rewards of the appreciation.

A majority of my recommendations to investors here in the Los Angeles are if you want immediate cash flow then invest out of state if you want appreciation then invest in Southern California.  Again, you have to buy the right property at the right price and if done correctly it will be well worth it in the long run.

@Alejandro Garcia welcome to BP!  Since you are in the Los Angeles market the best way to buy an investment property here in Los Angeles is to buy a multi-unit.  If you're flexible with location then there are still good valued properties near USC, near Inglewood and Hawthorne.

If you are not in need of cash flow and are okay with appreciation then I think it's still worth it to purchase here in the Los Angeles market.

@Account Closed yes, some neighborhoods and locations have slowed down, however, for the most part there is still limited inventory in Southern California.  The key for any investor buying in Southern California is to make sure if they are buying that there is still opportunity for appreciation.  

There are still a lot of retail buyers in Southern California which is absolutely fine but for an investor they need to be overly mindful at this time if there will be room for appreciation over the next few years.

@Jon Schwartz the rental demand is strong enough here in the Los Angeles market that you don't have to advertise it until you are much closer to being finished.  I recommend a maximum of 2-3 weeks out.

@Lan Nguyen yes there are quite a few options for a converted garage, ADU or multi unit in these particular markets. The key is to find a property that delivers one of the units vacant and has enough space to create an ADU or convert an unpermitted garage unit.

Quite often it's much easier if you have a Realtor doing some of the work for you so you're getting the most accurate information and not wasting your time.

@Daniel DiPiazza there have been increases in Compton over the last few years which is great but it has not been as significant as Inglewood.  South Los Angeles near USC and further south will continue to have good appreciation along with locations closer to the new stadium in Inglewood.

@Princeton Brooks yes, in the Los Angeles market it is difficult to find a multi-unit that is below $500,000 but if you're willing to be flexible on location and patient it's worth investing in the market for appreciation and debt pay down.

When I say be patient, continue to save money, work on getting approved for a little more than $500,000 and you'll be much closer to getting into a multi-unit.  Can you go a little further to Long Beach, or near USC which has properties closer to the $500,000 price point and I believe they'll see good appreciation over the next 8-10 year.

If you're unable to do these things then I think it's still worth it to buy a condo or town home as long as it's a good deal and not just a retail purchase.

@Brandon Cline in California Section 8 does require 90 day notice.  Section 8 is a month to month lease, however, it still require a 90 day notice.  If the tenant does not vacate after the 90 days then the owner/landlord is legally able to being the eviction process.

You can work with them on vacating earlier but based on the Section 8 rules they do not have to leaver earlier.

@Adrian Jenkins a higher CAP does not mean it's a bad investment it just means there is going to be a different strategy to making money besides cash flow. In the Los Angeles market there are not a lot of properties that are above a 5 CAP.

Quite often the only times I'll look at the CAP rate is if I'm dealing with commercial properties otherwise stick to IRR for 1-4 units.