Despite what you might have heard about a mass exodus of Californians to Texas and other states due to a number of factors, Los Angeles is still a thriving, sprawling metropolis with an appreciating real estate market.
Los Angeles remains one of the country’s most expensive places to live. It also continues to be one of the leading markets for real estate investment. There is a shortage of single-family homes, which in turn has forced people to rent apartments. That situation has helped fuel investment in multifamily housing.
One of the reasons the Los Angeles real estate market remains strong is because there is never a shortage of wealth and investment money flowing into the area, whether it’s from people involved in the entertainment industry, tech, or other sources, including overseas buyers.
As far as a place to live, it is the nation’s second-largest city, and the prospect of living here can seem overwhelming. But it has the right ingredients to keep a stable population that needs housing: a solid job market, great weather, and a lot of diversity spread across the many cities and suburbs. As long as there are tenants, there will be a market for rental housing.
Before you begin looking for investment opportunities in the Los Angeles area, hire an experienced real estate agent who knows the various cities and the ins and outs of the market for rental units. You should also line up financing ahead of time so you can move quickly if you make an offer on a property and it’s accepted. Lenders have different rules for mortgages for investment properties than for primary residences, so familiarize yourself with them and make sure you have enough money on hand for a required down payment.
The types of investment properties available are single-family rentals, multifamily rentals, and fixer-uppers. Multifamily properties can come in the form of duplexes, townhouses, apartments, and condos.
Experts advise that you try to avoid being blinded by the glamorous zip codes or areas and instead focus on more affordable cities and suburbs where you will get a better return on investment (ROI). A knowledgeable real estate agent will have all the current data on median purchase prices, average rents, and other information.
Two of the best areas for finding investment properties are South Bay and the Westside. Both are large geographic regions, but it’s possible to zero in on specific areas.
South Bay
South Bay stretches along the southern shore of Santa Monica Bay and includes several inland communities. Among the attractive coastal communities are Manhattan Beach, Hermosa Beach, Redondo Beach, Palos Verdes Estates, Ranchos Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, and on down to Seal Beach.
Some of the inland communities are Torrance, Westchester, Lawndale, Hawthorne, Lomita, and Inglewood, plus several others.
Here’s a quick look at some of these areas.
Manhattan Beach
With its prime location on the water and accessibility to the rest of the LA area, Manhattan Beach is considered one of the most livable cities in the United States. It’s a fabulous place for families and young professionals to live. Although prices for Manhattan Beach real estate have surged in 2021, it is still deemed an excellent market for investment.
The Westside
The Westside is a general description of the area west of downtown Los Angeles and south of the Santa Monica Mountains. It is the home of some of the area’s most exclusive communities and real estate.
Westwood
It’s hardly a surprise that this lively area of Los Angeles annually ranks as one of the most expensive rental markets in not only Los Angeles but in the country. With thousands of UCLA students needing housing after being required to live on campus their freshman year, the many apartment buildings ringing the campus area are cash cows.
West Los Angeles
This is another dynamic neighborhood full of shops and restaurants that is perfect for rental investments. It is a popular place to live because of its proximity to UCLA and the beach, as well as having some walkable areas.
Hollywood Hills
Pretty much everyone has heard of Hollywood Hills, high above the hustle and bustle of the urban sprawl. The plethora of single-family homes, apartments, and condos here make for excellent investment properties.
South Bay and the Westside offer a wide variety of investment properties. With a little research and the assistance of a knowledgeable real estate agent, you’ll be able to locate a property that fits your investment goals.
If you plan to buy South Bay real estate from Redondo Beach homes to Palos Verdes homes for sale for investment properties, contact an experienced local agent like Jon Grogan for guidance through the entire process.
Recommended Reading: Amenities Renters Look for in South Bay
