Finding the L.A. real estate gold rush ? in Compton, Watts and South L.A.

I've worked with customers in the "Central Los Angeles" area for about 3 years now. It's a very, very rough area, but also one where opportunity for rental units, flips, lot split builds and multi family have existed for some time. Plenty of diamonds in the rough - well built homes from the 1920's and 30's - on very large lots, waiting to be gently rehabbed or rented "as is". Unfortunately most are late to the party. Once the LA Rams Stadium was given the green light, many good opportunities to purchase went up by $100k or more.

If I had the $$$ to dive in, my guess would be to buy up light industrial or mixed commercial use. Most of these buildings are tear downs for land value. Cobble enough of these sites together and you could put in new apartments or better mixed use buildings.

My .02c

SGIP
 
Even in those areas, I question whether someone can find a duplex for $310k, where just one of the 2 units pulls in $1300/mo. 

That article could have been written in 2006.  Similar ones were.  I somewhat recall one article linked to on the old IHB, where members mocked the proud and somewhat haphazard use of the word "gentrification" by a white family that had recently moved to a famously gritty area (south central?).  Those people probably saw their home value plummet 40% before bottoming.  But hey, if they stuck it out, they're investment is now above water.  But the schools are probably no better.

Will these areas see another 40% crash? 
 
A friend of mine works as a buyer for a flipping operation in South Central.  She is managing 10-15 escrows at any given time (just on the buy side), in addition to making hundreds of offers on dilapidated homes.  For the right type of investor, South Central is a gold mine.
 
Sort of off topic, but I was reading about a new law in Philadelphia that was aimed at getting (mostly south asian) shopkeepers out of business

Soon those crappy univ of penn neighborhoods are going to be gentrified

Buy now or forever hold your peace.
 
2016 was best buying time, right after the stadium news went out (Think RE to buy once AMZ announces HQ2 for next opportunity....)

Here's an example of what was possible on a unit flip basis - Buy at $210, sell at ???

https://www.redfin.com/CA/Los-Angeles/6600-S-Van-Ness-Ave-90047/home/7280359

At least for this property, assuming 25% down at a 4.5% rate, PITI is $2,050 plus or minus. Still a reasonable long term rental option IMHO.

With enough boots on the ground, watching for buying opportunities, there still may be some gold in them thar hills.

My .02c

SGIP
 
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