Advertisement
Saturday, 14 December 2019
Agent Resource Center
Agent Resource Center

Los Angeles Real Estate Market is Expanding Drastically That It’s Becoming the Best and the Worst Place to Invest

Written by Posted On Thursday, 11 July 2019 08:53
Property Records - Los Angeles, CA investing in Real Estate Property Records - Los Angeles, CA investing in Real Estate

Los Angeles, California is expanding so much that as of 2019 L.A. is the second-largest city in the United States right under New York City. The population keeps increasing each year; there is also the expansion of real estate and real estate investing.

Growing up in L.A. I saw how my childhood neighborhood was being demolished to make way for new over-priced fancy apartment buildings. This is my story where I went from being a kid to a well-respected real estate agent.

My name is Sergio Perez, I was born, and raised in SoCal. I’ve been investing in properties for many years. I have an intimate knowledge of the people, economics, & the real estate market. I want to give the world a realistic idea of what is really going on in SoCal. Everything I have read online about investing in L.A. real estate is misleading. Either the content is overly pessimistic or way too optimistic. Before you even think about calling a real estate agent you need to read this story by Property Records.

Over-populated, Bad Traffic, Cost of Living Keeps Going Up

Hate it or love it: Its heavily segregated, a large portion of the residents have poor credit, the city is plagued with crime, the local government is too corrupt, the school system needs improvement, blight has invaded communities, and etc. I could go on and on, but the city is still highly beneficial for investors.

By my estimates, 70% of the residents prefer to rent as oppose to owning. I have met landlords who have told me tenants have paid off their mortgages from living in their properties for so long.

The city has the potential to recover, but with all the over-population in the DTLA area, many large companies do not want to do business here. Being a large city but yet lacks the necessary industries to make it thrive. I have friends who live next to the Valley and when they visit me they frequently complain about the bad traffic.

Investing in the SoCal Market

Many Angelinos have moved however, several hundred thousand have stayed behind. The larger damming part of investing in SoCal is too many investors are in the heart of L.A. You really have to know marketing in here if you want to survive because if you run out of cash, you run out of luck.

I have stumbled upon too many articles, and press releases all advising investors L.A.’s real estate, however, they give you the impression that every rental property you buy will yield up to $2,000 in rent. That is not a realistic estimate. If many residents could afford that, they would have moved long ago with the others. Analyze the demographics of the city by visiting L.A’s demographics there you can see what kind of income residents have.

The High Los Angeles Property Taxes

By far the biggest drawback to owning rental property in here, are the taxes. L.A. has one of the largest millage rates in the nation. I am currently disputing a S.E.V (state equalized value) because the city raised the taxes so high it doubled the amount of the mortgage payments. I took the battle to the state tax tribunal because L.A. rarely rectifies the problem. And after you buy the property the taxes will go up again, do the math before you make the offer on the property. The deal may not be as sweet as you thought.

Listing Additional Info

  • State: California
  • Address: 90007
  • City: Los Angeles
  • Zipcode: 90007
  • SOLD: no
Rate this item
(0 votes)
hubtelegram

Creative writer in the beautiful city of Los Angeles www.hubtelegram.com

www.hubtelegram.com
DocuSign 30 day free trial

Search by State:

Agent Resource

How to capture your next prospect - click here

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.