Home Buying in Los Angeles>Question Details

Anna, Home Buyer in Los Angeles, CA

Buying an apartment in LA for rent purpose. What is the best solution?

Asked by Anna, Los Angeles, CA Sun Nov 10, 2013

Hello! I'm looking for an apartment in LA or nearest 30 km. For the first 1-3 years I planned to buy it as investment (for rental purpose), not live there myself. What could you reccomend me? I need:

1-2 bedrooms
condition inside: not expensive or new, just normal condition
location: near from schools, banks, shops - in two words, what you need for work and live with kid
I do NOT need parking, pool, a part of garden, furniture inside, after renovation condition, etc

In financial part, is the best solution for me : up to $130 000 (sale price) | $900 (rent price) Is it possible?
If not, could you explain me basical reasons? And tell me please what prices I can expect for.

I know in LA center the cheapest 1-room apartment sale price is $155 000 and rent price is $1100. But my budget as maximum is $130 000.

Thank you! Anna

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Answers

9
Hi Anna,

Utilities are typically paid by the tenant, the amount really depends on how much the person uses (whether they run the AC all day, how much water they use, etc).

Taxes in California are approximately 1.25% to 1.5% of the purchase amount. Closing costs for the purchase will typically be 1-2% of the purchase amount.

Feel free to contact me directly at (310) 717-1321 or JamieTian@RodeoRE.com. I would be happy to answer any additional questions you might have about the home buying process or the condo/rental market here in Los Angeles. I can also email you some listings before you come to LA and we can narrow down some properties that you might be interested in to view in person.

Best,

Jamie Tian
Rodeo Realty
(310) 717-1321
JamieTian@RodeoRE.com
BRE #01920120
Web Reference: http://www.jamietian.com
2 votes Thank Flag Link Mon Nov 11, 2013
Jamie, thank you very much, it's really important info for me (probably it's a usual questions for first buyer...). I wouldn't ask you for a listings right now because in 2 months many of them can be sold. But in the beginning of Jan. (after holidays), it could be perfectly. I'll send you message. And thank you again! Anna
Flag Mon Nov 11, 2013
Hi Anna,

For under $130,000, you can possibly find a 1 bedroom or studio condo in San Fernando Valley, or in Long Beach. In most parts of Los Angeles, 1 bedroom condos will be at least $200,000 or so.

I would be happy to email you a list of properties with photos in your price range, as well as answer any additional questions you have about the home buying process, or the process to rent out your property.

Feel free to contact me directly at (310) 717-1321 or JamieTian@RodeoRE.com.

Best,

Jamie Tian
Rodeo Realty
(310) 717-1321
JamieTian@RodeoRE.com
BRE #01920120
Web Reference: http://www.jamietian.com
2 votes Thank Flag Link Sun Nov 10, 2013
Hi Anna,

The housing market took a hit in 2007-2008, but the market has been very strong in Los Angeles in the past few years and most areas have recovered and the prices are at or reaching the levels before the crash. The market is holding steady and it looks like prices will continue to grow in the next few years. It is actually a great time to invest in a property in Los Angeles!

Feel free to contact me directly with any other questions/concerns regarding the home buying process here in Los Angeles and I am looking forward to helping you find a great property!

Best,

Jamie Tian
Rodeo Realty
(310) 717-1321
JamieTian@RodeoRE.com
http://www.JamieTian.com
BRE #01920120
Web Reference: http://www.jamietian.com
1 vote Thank Flag Link Wed Nov 13, 2013
Thank you, Jamie! It's a very important info for me.
Flag Wed Nov 13, 2013
I strongly suggest you work directly with a good agent. The answers are not always simple and there is no one answer that fits all situations. You need someone that really understand the market. Also, a lot depends on the level of risk you are willing to take.
1 vote Thank Flag Link Mon Nov 11, 2013
Thank you Shannon. Of course I understand it. Now I live in Moscow and there is the same. Beside of many other risks, do you mean a basical real estate situation on market in LA area? As I know last 10 years the sale prices are falling down. It's not so good for investment, of course! But first, I hope it will stop or will more slowly (maybe I wrong!) and second, after some time (2-3 years) I planning to live in this apartment myself. But if prices are strongly falling, or on different reasons it's a not so stablish investment, I will very appreciate your advices or explaining it in more detail. And thank you again for help me to make a good choise and buy a good property!
Flag Mon Nov 11, 2013
Anna,

It is possible to find a 1 bedroom condo in the San Fernando valley, within 15 miles to downtown LA, for about $130,000.
Rentals in the area are between $1,000 to $1,200, for a 1 bedroom condo, depending on location and condition of the condo.

I've personally invested and have had rentals for over 12 years, and am very qualified in advising Buyers and Sellers in this field.

Feel free to contact me with additional questions.

Douglas Lagos
Tel. (310) 463-8088
Douglas@douglaslagos.com

Coldwell Banker Residential
CA BRE #01921046
1 vote Thank Flag Link Sun Nov 10, 2013
I concur with Jamie Tian - who knows the condo market very well.

If you need help with financing, please check out my condo loan blog below.

Mario Pinedo, CCIM
Mortgage Banker
CS Financial
http://www.HomeLoans.LA
http://www.HouseLoansLosAngeles.com
http://www.CondoLoansLosAngeles.com
http://www.Facebook.com/HomeLoans.LA
BRE Broker 01118365
NMLS 1029116
Office 424-249-7434
Cell 415-269-6249
mpinedo@csfinancial.com
Twitter @mariopinedo
1 vote Thank Flag Link Sun Nov 10, 2013
Mario Pinedo,…, Real Estate Pro in Cupertino, CA
MVP'08
Contact
Hello,

The first step is to iron out how you will be financing this purchase and if it is all cas, be prepared to show verifiable proof of funds.
The second step is to find a Realtor who has experience with investment purchases and one who knows the Los Angeles area very well.

Also just remember even if you're not living there for the first three years, the parking in LA is important as is having the laundry either inside the unit or on the premises.

Good Luck!
1 vote Thank Flag Link Sun Nov 10, 2013
I repeat my last question, I think it could be important for any buyers in CA too. About investment perspective. What is a basic real estate situation on market in LA area? As I know last 10 years the sale prices are falling down. It's not so good for investment, of course! But first, I hope it will stop or will more slowly (maybe I wrong - correct me please) and second, after some time (2-3 years) I planning to live in this apartment myself. But if prices are strongly falling, or on different reasons it's a not so stablish investment, I will very appreciate your advices or explaining it in more detail.

And thank you very much for all your answers!
0 votes Thank Flag Link Wed Nov 13, 2013
Thank you very much for your answers! You all very help me and give some hope I can find my apartment here for this price range. I have a few more questions, the first concerning of rent rules: how much is utilities for such apartment and (usually) who pay for this (me or people who will rent) ? I expect is ~ $250. Correct me please if I'm wrong! The second one: how much (just level of prices) will cost taxes for this property (per 1 year) and how much will all additional payments when I will make purchase (in two words, how much I should pay in addition to apartment sale price) ? Thank you again!

I planning to visit LA 15th Jan. I will stay there for 2- 3 weeks. I'll be happy to ask you listings of actual offers and see them.
0 votes Thank Flag Link Sun Nov 10, 2013
Anna,
Utilities are paid by the tenant. Taxes are approximately 1.25% of the purchase price. Taxes are paid every year..
Closing costs, if paying all cash, are approximately 2%.

Send me an email, and I can answer any questions you may have in more detail.

Douglas Lagos
(310) 463-8088. (310) 463-8088
Douglas@douglaslagos.com

Coldwell Banker Residential
CA BRE #01921046
Flag Sun Nov 10, 2013
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