Hey guys what do you all think of the real estate market in the LA area? Would you invest if the property had descent cash flow?
What cap rates or cash on cash return would you look for in apartments. I’m looking for something between $ 800K-1.25 Million (which in lots of parts of LA won’t get you that much)
You are asking a very broad question. As you noted, the price range narrows the type of property you could look at.
Assuming the cap rate for a specific property was good and the property is not in a war zone, I see no reason why I would not invest. Then again, that is really easy to say compared to would I buy a specific property.
Are you an investor? Have you run the numbers on specific deals? If so, what are you seeing?
Yes investor.
Been looking at properties in LA that have cap rates between 5-8% depending on many factors- size, location, building quality etc.
I was just wondering if there are any LA investors who could recommend areas with higher cap rates and ROI
I agree with you that areas that are working class ie. C class areas are fine and tend to have better cash flow. Looking for any cities within Los angeles, perferablly in non-rent controlled areas which is an issue in LA.