If you're looking for guaranteed rentals, the blocks North of USC's campus in downtown LA are 100% rented every year. Hike the rent, someone will still lease it.

I think that the best, relatively low-cost investment in Los Angeles real estate with an eye towards future appreciation is the Baldwin Hills / Crenshaw / North Inglewood area. These neighborhoods are hugely desirable because they are right in the center of L.A. and are next to where the last over-heated round of 'genrification' recently halted in Westchester, Culver City, Picfair (Pico & Fairfax) and Koreatown. Many charming, well-kept, suburban homes that command decent rents can be had here for $225-350k. They are close enough to the beach that they get the ocean air and are not nearly as hot and off the beaten path as homes in most of the other communities mentioned in this discussion (with the exception of Culver City where you probably won't find a house for $300k or even $400k.) These neighborhoods will be prime-time real estate when the L.A. basin goes high-rent eastward to the 110 Fwy by USC and southward to the LAX glidepath along Florence. Also for anyone with a bit more to invest, there are wonderful homes up in the hills dating from the 1930's to 1960's that rival Cheviot hills architecturally (for around half the price) and have some of the best views in the city from Catalina, to Santa Monica & Downtown

I've put together a current report of nine promising listings in the Baldwin Hills / Crenshaw / North Inglewood area from $225k-$330k which I'll be glad to email to anyone who asks.

Steve,
This is a complicated question but a good one. You need to look at property values over time in the areas that you are interested in. (dispite the current market conditions).
Generally speaking,stable neighborhoods (more single family homes..less apartments), with good public services (Schools,Police, Fire)will maintain their value better then the inverse, and also draw good tenants. A good site for 1031 exchange questions is http://www.1031exchangeadvantage.com

Hi Steve,

With $300K I would look for cosmetic fixers in Atwater Village, Silver Lake/Echo Park/Hollywood (can be tough), Glassell Park, Eagle Rock, Highland Park etc if it were me personally. These areas have been up and coming, produce good rents (because they are centrally located to freeways, downtown and schools) and have seen lots of gentrification over the recent years. You may look into spending a little more cash or taking out a loan to fix it up a bit and achieve higher rents.

Let me know if you need any help. I'm currently closing/ in escrow on 3 properties that fit what you are considering.

Sincerely,


Grant Linscott
Keller Williams Realty
323.333.6222 cell
grantlinscottproperty@gmail.com

Hi Steve,

Just a couple of ideas in looking for an investment property..

- Check to see if there is any rent control restrictions in the area you are looking & what the conditions are.
- Check to see if there is any potential change in zoning or plans for redevelopment of the area, which may increase or decrease the value of the property.
- Know the operating expenses and income of the property if currently leased.
- Look for a place with cosmetic problems, not structural (i.e. the worst house in the best district) & find out cost to rehab.
- Get your own independent appraisal.

If I were in your shoues, I would probably try to find a fixer upper in an up-an-coming area that may have plans for future development of some kind of entertainment district, etc.. For example, potential plans to redevelop Hollywood Park into a retail establishment & build a huge entertainment facility similar to LA Live in Arcadia by Santa Anita Racetrack, which ideas have both been tossed around by developers..

Let me know if I can help you out in any way.. Feel free to email me anytime. Good luck in your search!


John Barry
Coldwell Banker Residential Brokerage
Cell: 323-810-7976
Email: john.barry@coldwellbanker.com
Twitter: @RealtorJB Barry