Home Buying in Los Angeles>Question Details

ManchesterUn…, Home Buyer in Los Angeles, CA

What are the Los Angeles neighborhoods with the most 3-5 years upside potential for single family home investments?

Asked by ManchesterUnited_LA, Los Angeles, CA Mon Jan 6, 2014

Help the community by answering this question:


The westside has increased significantly in value and is very sought-after - read: too pricey!
South LA county which is more affordable should be the second wave. For coastal, I see some good investment opportunities in Long Beach.

I hope that helps!

Mario Pinedo, CCIM
Mortgage Banker
CS Financial
BRE Broker 01118365
NMLS 1029116
Office 424-249-7434
Cell 415-269-6249
Twitter @mariopinedo
Web Reference: http://www.HomeLoans.LA
1 vote Thank Flag Link Mon Jan 6, 2014
Mario Pinedo,…, Real Estate Pro in Cupertino, CA
Hi Manchester United, did you get enough information, and/or the answer ?
0 votes Thank Flag Link Sat Jan 18, 2014
Most Westside areas definitely will be toward the top of the list do to desirability, here is my short list of areas of preference:
1. Santa Monica
2. Beverly Hills
3. Brentwood
4. West LA
5. Hollywood/Hollywood Hills
6. Pacific Palisades
7. Malibu
8. Marina Del Rey
9. Westwood/UCLA area
10. Beverlywood
All of these areas continue to have good property values and continue to rise.

If you are thinking of buying, feel free to contact me anytime. I highly recommend higher your own exclusive buyers agent to assist you with your home buying needs. They will be able to assist you with locating the perfect property or properties that match what you are looking for, assist with setting up all showings, make offers and handle negotiations, inspections, all the way through the close of escrow. It costs you nothing to hire your own exclusive buyers agent as the seller pays the buyers agent commission, this will be a very valuable asset to you and your home search needs.

Have a great day,
Heather Paul, Broker Associate, Realtor
Coldwell Banker
0 votes Thank Flag Link Sat Jan 11, 2014
If you are buying a high end home in an area like Beverly Hills the value could go up the same as it would in San Pedro ,but 20 % appreciation of 2 million dollars compared to 20% of $500,00.00 you would be better off with the high end property .If you are buying like for like prices ,the beach cities could rise faster than the inner cities . Los Feliz & West Hollywood are also hot areas ! Good Luck !
0 votes Thank Flag Link Sat Jan 11, 2014
The best investments are in the best neighborhoods, which always have the highest demand. I recommend you begin a good working relationship with a professional Realtor who can guide you.
0 votes Thank Flag Link Thu Jan 9, 2014
santa monica...brentwood...palisades...also manhattan beach...most areas with good school districts

Cliff Kessler
Keller Williams Luxury
0 votes Thank Flag Link Thu Jan 9, 2014
Definitely downtown art district
0 votes Thank Flag Link Tue Jan 7, 2014
For investment, Down Town Los Angeles, West Adams,anything from USC on the east, to about Fairfax on the west, both sides of 10 FWY, but stay south of Venice, and north of Jefferson blvd.
I've sold several over the years, this area has been going up & up for years. 310-702-6145
0 votes Thank Flag Link Mon Jan 6, 2014
Hi Manchester United,

Excellent question. Unfortunately the answer to 'when' the best time to invest in real estate for short term gains here is... over the last two years.

Property values in many parts of Los Angeles, the Westside, and South Bay were as much 30% to 40% below their 2007-2008 'market bubble' highs from 2009 to 2011. Since then we've seen price increases almost monthly throughout much of 2012-2013 and values are now at or even over their previous highs in some neighborhoods. The market in L.A. from downtown to the beach cities now actually appears to be slowing and is possibly stabilizing. The real question may be ‘will these new values be sustainable?’

Though investments from stocks to real estate seem to have been doing quite well over the last couple of years the overall economy has remained weak both here and abroad. There’s also the question of how prices will respond as more houses come on the market and how the banks will handle the huge ‘shadow inventories’ of properties that they hold title on.

If an economic crisis can be avoided I think that the gains in local values are likely to be real and can be maintained. The upward trend of real property prices in the long-term is a proven tendency and the parts of L.A. and South Bay in question are some of the most valuable and in-demand real estate in the country.

The short answer to your question is that I don't see a lot of room for profit due to appreciation in Los Angeles from downtown to the beach cities over the next few years unless you're adding a lot of value to the properties by seriously rehabbing/expanding them or by putting a couple of condos on a lot where a house was.

It's also worth noting that properties in high-demand areas don't pencil out well as rentals. Even multi-unit investment properties often only offer cap rates of 1% or 2% while 4% or 5% is rare to unheard of and single family homes are even less profitable as income generating investments.

I've purposely excluded the San Fernando Valley, Glendale, Pasadena and (with the exception of L.A. proper) any area more than 5 or 10 miles from the beach in this discussion. This will make a lot of people mad, but the city itself and beaches are the areas that attract global interest and demand… I think there are some spectacular profits awaiting longer-term investors here and that everything else is pretty much second rate when it comes to the potential for appreciation.

While the more well-known (and expensive) areas in L.A. proper and along the coast like Hollywood, Melrose, Fairfax, the Miracle Mile, Beverly Hills, West L.A., Brentwood / Palisades, Culver City, Santa Monica, Venice, Marina del Rey, and Manhattan & Hermosa Beaches will do very well over time I think that it’s the more affordable, less well known areas which will offer really remarkable longer-term returns… especially if you have less money to invest!

In my opinion, the areas which will enjoy the greatest appreciation the soonest will include:

Some areas just west of Downtown particularly to the south of Silverlake and Echo Park, and by USC along the south and western edges of Koreatown.

All the suburban neighborhoods from Baldwin Hills, Crenshaw, and View Park to Ladera Heights and North Inglewood.

All the less-expensive areas west of the 405 Freeway by Baloona Creek / Culver Blvd. and in the eastern end of Westchester / La Tijera.

Some parts of Hawthorne, Torrance, and Lawndale that are closer to the ocean.

San Pedro (L.A.) and Long Beach – These are no-brainers / both are very affordable and on the water.

As an added bonus cap rates on income properties can go as high as 5% to 6% or more in many of these areas.

Though my website focuses on Los Angeles’ beach cities as a native of 55 years I have extensive knowledge about all of L.A.’s diverse neighborhoods. Please feel free to call or email me anytime if you’d like to find out more about the opportunities available in any of these up and coming communities.

Best of Luck.
0 votes Thank Flag Link Mon Jan 6, 2014
I don't know where exactly you are looking because Los Angeles is a vast area but location to the freeway, low crime rate, and excellent schools are good indicators of finding neighborhoods that will hold value.
0 votes Thank Flag Link Mon Jan 6, 2014
I am fresh out of crystal balls.

How about 2 single family homes?

It's not in the MLS yet, but I'm listing a "2 on a lot" in LA county today, total of 2360sqft, it's a 2b 1ba home & a 4b 2ba home for under $550K. Just a 2b 1ba home in this area is selling for near $300K. So you'd be getting the 2nd home with 4b 2ba for under $250K.

If you'd like to discuss this further, shoot me an email directly or give me a call. I don't look back on this same Trulia posting for Answers or Replies posted after mine.

Emily S. Knell
562-430-3053 c
Realtor Since--- 1996
Realty ONE Group
BRE# 01211967
0 votes Thank Flag Link Mon Jan 6, 2014
There are lot of great options depending on your budget. I'd be happy to assist you and show you all different choices. Contact me at lenasrealtor@yahoo.com or (310)625-9005
0 votes Thank Flag Link Mon Jan 6, 2014
If I know what your price range is, I can do a search in areas with that range, checking the current listings and sales to help you determine which neighborhoods you should invest in.
Please call me at 818-730-8635, or e-mail me at rholcwl@pacbell.net.
Clint Lohr, Keller Williams Realty- World Media Center.
0 votes Thank Flag Link Mon Jan 6, 2014
Anything by the beach. And, think outside the box, like the LA South Bay area. Great schools (not LAUSD), great neighborhoods and great appreciation. If you would like more information about this great area of LA, please feel free to contact me directly.

Shel-lee Davis BRE #01817412
Real Estate Consultant
International Real Estate Specialist - IRES®
Senior Real Estate Specialist - SRES®
Certified Home Seller Advisor - CHSA®
Certified Home Buyer Advisor - CHBA®
Member - National Association of Certified Expert Advisors - NAEA
Certified Distressed Property Expert - CDPE®
RE/MAX Estate Properties
424-2HELP12 (424-243-5712)
0 votes Thank Flag Link Mon Jan 6, 2014
What price range are you looking at?

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Mon Jan 6, 2014
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