All Forum Posts by: Shiva Bhaskar

Hello friends,

I'm newer to the CLE market (invest mainly here in LA, where I'm based), but I know some folks who are also out of state, who've had good experiences investing in SFH in the area, so I"m looking into it. Spoke with someone recently who mentioned Euclid or Parma as possible areas to look into - what sort of cap rate would be competitive for single family homes in these areas? I am told that Euclid is a good deal cheaper than Parma, but Parma may be more stable in terms of tenant turnover. Any feedback is appreciated.

Brian, great feedback. Thank you. I too think that LA has a strong shortage of affordable housing, and Watts does indeed offer better cap rates, and if we were to get to the point that we had several properties in the area, that might make management etc easier as well. I definitely don't expect to see the sort of changes we did in Echo Park or East Hollywood, but I think if the neighborhood holds steady and generates decent income, it's not a bad play as far as LA goes. The police and community have worked together well to stabilize the area, which is great to see. 

Gardena and other areas near there, not to mention Hawthorne and Inglewood, are improving and gentrifying, so those some more like appreciation plays, good for a cash out refi down the line. Lots of exciting things happening here - glad I moved back to LA to be a part of it. Thanks again Brian! 

Hi Mike, welcome! I'm an investor based in the South Bay, relatively new myself. I recently bought a single family rental in Gardena, and working on doing another one elsewhere (soon I hope). I'd love to chat sometime and offer my thoughts and answer any questions you may have. Always excited to grow with folks who, like me, are newer in the business. Reach out if you want to chat sometime. 

Hello friends,

So I've been looking into some stuff in Watts, as well. My prior investing experience is mainly in the South Bay (Gardena), but I've seen a couple of places that look like decent candidates for a little bit of work, and generating some good cash flow after (by LA standards anyways, 6 cap is possible with some of these after a little bit of work it seems). The area has improved a lot, I grew up in LA and I think it's a far cry from the 80's or early 90's. There are plenty of good folks there, and I think it is possible to find responsible tenants even in these economically challenged areas (a mentor of mine has invested quite a bit in challenged areas and done well, so I do have some help from him as far as screening tenants etc). 

 The biggest issue I have is, everyone tells me I'll have to do Section 8, which I'm not per se opposed to, but it does come with some unique challenges. Is Watts heavily Section 8, or is it realistic to think I could get a tenant outside of that? Also, unlike elsewhere in South LA (areas more to the north and West), it's hard for me to see how much Watts could improve in terms of property values and rents. I think these would be decent deals just off the rents and some steady appreciation, but I'm curious as to whether anyone else is familiar with or has thoughts regarding this market. Thanks for taking the time! 

Hi Ruddy, I am based in the South Bay (Redondo Beach/Torrance), but either Westside or DTLA could work - Thursdays are my best day, but given a few weeks notice I"d love to come to anything you set up. Thanks for arranging this. 

Hello friends, just wanted to get folks thoughts on these areas? I am a newer investor, involved mainly in SFR in Gardena and Hawthorne area. I've seen what's happening in South Los Angeles I am intrigued as to what folks think about these areas, as somewhere to check out next. I don't know that there's the same chances of appreciation as in the northern parts of South LA, but it seems like the cap rates in Compton and Lywnood are better than elsewhere, and there are some deals available if you are willing to do some rehab. However, I can't say I know too many folks who've ventured into deals out there, so curious to see what you all think?