Brief Roundup of Residential Real Estate Market for Young or New Investors Wanting to Start Small and,,, (2017)
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Perhaps you find yourself with a cache of surplus money that you wish to invest in the perfect property, suitable for flipping. You will be delighted to know that Los Angeles is an ideal place to focus your search. Here is a quick overview of our ideas on flipping foreclosures in this area…
In general, a foreclosed home receives 10-20 cash and conventional offers. This leads to a significant wait time while the offers get “bid up”, eventually selling at a much higher price than listed for. In addition, these homes are sold “without warranty”, which can lead to unforeseen future problems. As such, there are other properties that are not foreclosures that could be a better deal in the Los Angeles area. However, be assured that any list of available homes we generate for a particular area will include foreclosures and pre-foreclosures.
Regarding the range of prices for these homes, here is a sprinkling…
On the “Westside”, in places like Santa Monica, Mar Vista and West Los Angeles, a 1 bedroom condo/townhome will start around $500,000, but most good ones are over $800,000. Occasionally, a property appears for less on the internet, but usually these lower priced homes are for investors and are generally “non-owner occupied only”, where current tenants can remain there indefinitely.
An exciting, niche area, home to Sony, MGM, NPR West and the NFL studios, called Culver City, has 2 bedroom condo/townhomes for around $400,000.
Less desirable areas of West Los Angeles, like the infamous Compton 🙂 do have single family homes in the $300,000 range but living there can have its challenges.
An area in “The Valley”, the San Fernando Valley, called Woodland Hills, has 2 and 3 bedroom townhomes for $250,000-350,000. These properties bring in rents of $2200-2400/month.
The picturesque city, known as the Santa Clarita Valley, about 29 miles north of LA, has townhomes for $250-300,000, strategically located near the town center mall and industrial park, close to many employment opportunities.
North of there, in the sprawling, diverse communities of the Antelope Valley, there are single family homes in the $350,000 range.
In the deserts, like Palm Springs and Joshua Tree, there are homes and condo/townhomes between $200-500,000.