With few homes on the market and new home inventories at an extreme low, right now is a great time to consider real estate investment in Los Angeles.
According to Red Blue Reality (RBR) professionals in LA, the housing prices here remain low, standing at 30 percent below peak. Mortgage rates and borrowing costs are also low, making this an excellent to buy.
RBR offers these 3 profitable tips for those who want to invest in properties in LA.
As a real estate investor, don’t expect to make a large down payment on a property It is recommended that you buy with a low down payment and save the extra funds for the improvement of the properties you purchase to make them more attractive to renters.
The second tip is on rent stabilization laws in the LA market. These laws don’t apply to single-family homes. RBR advises that you buy a single-family home as an investment. With the improvements you make you may be able charge more rent for this type of property. Another reason to buy this type of property is that home renters tend to stay longer than condo or apartment dwellers. Remember less turnover means less cost to you. Also most home renters pay their own utilities, meaning there will be less outlay for you as an investor.
Lastly, RBR advises that you get your loan pre-approved. This lets you know how much you can borrow, at what rate and the repayment period, which enables you to negotiate a deal on a property that is attractive to renters and makes sense to you. You will be able to close deals quickly and let tenants move in quickly when you can offer a fast and realistic quote.
Also remember to clean up the property as necessary, prepare to close escrow, and move in the tenants at a rate that will make you a profit every month of the year in Los Angeles.
For more information on Real Estate in Los Angeles or Neighboring Cities head over to http://apexestategroup.com