Answers (13)
- Nathan Colmer, "NathanColmer"
- Contributions:274
While it may be true that other areas have lower prices, I think the best advice here is to buy in an area where you can see what is happening in the property. It will be a pain for you if you have to hop a flight just to check on an issue.
That being said, it may be better to NOT buy if you can't achieve positive cashflow. You have to keep the goal in mind (which I assume is to make money) and buying a house now, only to have the headache of a rental AND make payments on it doesn't make sense. If you really want to buy, look for a deal that works. It may take time but you will find it!
That being said, it may be better to NOT buy if you can't achieve positive cashflow. You have to keep the goal in mind (which I assume is to make money) and buying a house now, only to have the headache of a rental AND make payments on it doesn't make sense. If you really want to buy, look for a deal that works. It may take time but you will find it!
- ProfessorBaron
- Contributions:308
Great advice below Realtor John.
Also, buy properties in good shape that are close to rental ready. If you can buy with a tenant in place, that is even better. Take the net cash flow amount, so rents minus all expenses (including the mortgage payment) and divide by the amount of money you will invest (downpayment + closing costs + rehab costs).
You should shoot for at least 5% plus and hopefully more like 7% or 8%. Further out areas of LA would be best, buy moderately priced properties that have reasonable rents and lower vacancy.
If you buy a condo or townhome make sure to carefully review the HOA financial and operational condition.
Good luck.
Also, buy properties in good shape that are close to rental ready. If you can buy with a tenant in place, that is even better. Take the net cash flow amount, so rents minus all expenses (including the mortgage payment) and divide by the amount of money you will invest (downpayment + closing costs + rehab costs).
You should shoot for at least 5% plus and hopefully more like 7% or 8%. Further out areas of LA would be best, buy moderately priced properties that have reasonable rents and lower vacancy.
If you buy a condo or townhome make sure to carefully review the HOA financial and operational condition.
Good luck.
- David Cooper, "LasVegasRents"
- Contributions:281
Nothing will stop you from investing in rreal estate than the first "tennant from hell" . Ask anyone who has any experience renting houses or apartments. The plumbing always goes out at midnight, the rent always arrives on the 15th, or the 25th, or never. From day one, the perfect tennant on paper becomes your biggest nightmare. I would have an experienced property manager in place, before entering into any purchase agreement
- John Sefton, "Your Realtor John"
- Contributions:122
Number one advice I would give to you, both as a 25-year veteran Realtor and as a 35-year experienced rental property owner, stay within a half hours drive of your own home. Going into a remote area that you cannot visit regularly can be a real pain, and there should be good rental areas within that distance.
Second, if you are buying a single family home, you should be able to manage it yourself. If you cannot manage one unit, you probably should not be a landlord.
- Oneshot21
- Contributions:25
i am sort of in the same position as you are. A few of my friends are into section 8 housing and are doing well. One of them buys properties that are very cheap so he can pay with all cash. He bought a place this summer for 15k about an hour and a half from LA. He put in about 10k to fix it up an has been renting it out since.
A couple of reasons to look at section 8 is that the rent is always paid on time. Also the tenants have incentive to keep the property clean so they keep their section 8 status. Just food for thought.
A couple of reasons to look at section 8 is that the rent is always paid on time. Also the tenants have incentive to keep the property clean so they keep their section 8 status. Just food for thought.
- David Cooper, "LasVegasRents"
- Contributions:281
Dear opportunist7 asked "1) how do you decide WHERE to buy the investment property ?"
I can suggest 30 year old houses in Los Angeles that will cost you$250,000 and never achieve Positive Cash Flow, or I can suggest 4 year old houses that sold in 2006 for $385,000 and can be bought off a foreclosure list for $125,000 turn-key that will rent for $1400 and get you Positive Cash Flow and appreciation potential for as little as $30,000 cash down including a property manager. Plus when you have to check up on your investment home in Las Vegas, your trip becomes tax deductable.
It's something you might want to consider.
David Cooper
I can suggest 30 year old houses in Los Angeles that will cost you$250,000 and never achieve Positive Cash Flow, or I can suggest 4 year old houses that sold in 2006 for $385,000 and can be bought off a foreclosure list for $125,000 turn-key that will rent for $1400 and get you Positive Cash Flow and appreciation potential for as little as $30,000 cash down including a property manager. Plus when you have to check up on your investment home in Las Vegas, your trip becomes tax deductable.
It's something you might want to consider.
David Cooper
- Sean Glaze, "SeanGlaze"
- Contributions:574
The question was about Los Angeles not about Las Vegas. The answers should focus on Los Angeles. If you would like rent lists and available properties in your area you can contact me via my zillow profile. I will be glad to help you I am located near your area and specialize in rental units and run a property management company.
- David Cooper, "LasVegasRents"
- Contributions:281
Welcome! This is the best real estate blog in cyberspace, so you are going to get good information from reliable sources.
My #1, and by far the most important, suggestion is find a property mangement company that can supply you with lists of completed rentals.
You now have houses that have actually been rented, and you know the rents and where they are located. Now have your real est estate a gent locate similar houses, and since you know the rent, you can subtract out the mortgage payment, taxes, insurance, HOA, and manager's fee. And if you can get Positive Cash Flow, you are ready for a decision.
There are Positive Cash Flow Move-in condition houses in Las Vegas under $150,000 in upscale neighborhoods.
[Self-promotional content and contact information removed by Zillow moderator. Please see About Zillow Advice and our Good Neighbor Policy for guidelines]
- Tyler Rygmyr, "Tyler Rygmyr"
- Contributions:205
Sabrina,
I would interview a couple Realtors who are experienced in rental homes, pick an area zoned for good public schools, and then look at rental values on comparable properties to get an idea if the #'s make sense for you. I have a handful of rentals and have enjoyed the process/investment.
I would interview a couple Realtors who are experienced in rental homes, pick an area zoned for good public schools, and then look at rental values on comparable properties to get an idea if the #'s make sense for you. I have a handful of rentals and have enjoyed the process/investment.
- Sean Glaze, "SeanGlaze"
- Contributions:574
Hire a Realtor that also specializes in property management. My office does both I am sure there are offices in your area that do both as well. Nicer areas are easier areas to rent the property, obviously. First you have to start with what you can afford. Then what is the purpose of the property? Lifelong rental? Short term investment? Future retirement home? It is more complicated than just finding a property and renting it out. In general people all like the same things the more amenities the more quickly the property will rent, if priced correctly. If you would like to have a full conversation about this contact me via my zillow profile and I will b glad to help you get some information.
- HomeSand.net, "White Picture"
- Contributions:4720
Las Vegas floods with unoccupied houses, which is not easy to rent them out because of more houses then people, elsewhere in Arizona, Florida, etc... you can buy $80K house and rent it out for $1,000- $1,200 a month. In Los Angeles, CA. the standard is $700 per $100K house.
How to rent it out?
1- Hire the real estate broker to list the rental for you with 6% commission fee of 1st year rent, you do not pay to the broker for the thereafter years.
2- Advertising on Zillow or the other real estate websites.
3 - put the sign in the front-yard (which I'm usually do).
Buy the apartments to get better rental income then the single houses.
Do not buy too expensive house. Cheaper house, easier to rent out and get pay because of cheaper rent, many renters can afford.
Do not buy the condos or the houses, which are in the HOA community.
It is good to buy 'the close to the industry area houses'.
How to rent it out?
1- Hire the real estate broker to list the rental for you with 6% commission fee of 1st year rent, you do not pay to the broker for the thereafter years.
2- Advertising on Zillow or the other real estate websites.
3 - put the sign in the front-yard (which I'm usually do).
Buy the apartments to get better rental income then the single houses.
Do not buy too expensive house. Cheaper house, easier to rent out and get pay because of cheaper rent, many renters can afford.
Do not buy the condos or the houses, which are in the HOA community.
It is good to buy 'the close to the industry area houses'.
- Vince Curtis, "SoCal Appraiser"
- Contributions:5441
Though sales data is relatively easy to get, accurate rental data is harder. What you want is the most bang for your buck.
If you live in Monterey Park, buying near Detroit is unwise, though you can probably get some good deals, hence buy within an hours drive of you.
Most landlords I know will say buying an SFR for a rental is a better bet than an HOA ladden condo or townhome.
As far as HOT rental markets, if you buy an SFR, buy one as far from apartments as you can ie in an area of mostly SFR's. Those hold their value more.
Agents - well good luck on that.........but WHATS your price range ??
If you live in Monterey Park, buying near Detroit is unwise, though you can probably get some good deals, hence buy within an hours drive of you.
Most landlords I know will say buying an SFR for a rental is a better bet than an HOA ladden condo or townhome.
As far as HOT rental markets, if you buy an SFR, buy one as far from apartments as you can ie in an area of mostly SFR's. Those hold their value more.
Agents - well good luck on that.........but WHATS your price range ??
- Stephen Murphy, "Outof thebox"
- Contributions:69
You need an agent that owns property to work with. Don't work with anyone that doesn't. You also need an investment philosophy that will guide you. That's first...everything will be easy to figure out after that.
As an investor you use the 1% rule to decide what to buy. Meaning if you spend 500k it needs to rent for at least 5k a month. If it does not meet this rule don't buy. I have owned rentals and have owned them for 15+ years. When I don't buy by this using this rule I have always regretted it. If you can't find it in Cal go where you can find it.
Word of caution: The fundamentals in California are not good at all. My daughter has two and wishes she never had bought them. I said don't buy them....She trusted her Realtor....LOL..typical.
If you wanted to chat a bit feel free to call me.....[Phone number removed by Zillow moderator] ...I'm in Vegas.
As an investor you use the 1% rule to decide what to buy. Meaning if you spend 500k it needs to rent for at least 5k a month. If it does not meet this rule don't buy. I have owned rentals and have owned them for 15+ years. When I don't buy by this using this rule I have always regretted it. If you can't find it in Cal go where you can find it.
Word of caution: The fundamentals in California are not good at all. My daughter has two and wishes she never had bought them. I said don't buy them....She trusted her Realtor....LOL..typical.
If you wanted to chat a bit feel free to call me.....[Phone number removed by Zillow moderator] ...I'm in Vegas.
in Los Angeles, CA -- how do i decide where to buy a house to RENT OUT.
hi all:
i live in los angeles, california. i have owned the home that i live in for about 5 years now.
now, i have some cash saved up and am looking at buying an investment property to rent out.
i am sooooo new to the idea as well as the process and am feeling overwhelmed.
questions that i have:
1) how do you decide WHERE to buy the investment property ?
2) what kind of property should i buy -- single family, duplex, condo, townhome ??????
3) especially in an around los angeles and orange county, how do i decide where to buy. how do i know which areas are "hot" and which are not in terms for the rental market ?
4) what kind of real estate agent should i hire ? names of any good one's (in LA) that anyone can recommend.
any other advice that anyone can give will be very greatly appreciated.
And then again, this is JUST the beginning -- how do i rent out the property ???
PLEASE HELP!
Thank you,
Sabrina.
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