Buy a Los Angeles condo?
I have a client in a 1031 exchange whose recent fourplex purchase has left very little cash to buy a second property. So we’ve turned to condos, where the market is great for buyers right now. I don’t normally buy condos in Los Angeles because if a cheap 1-bedroom condo costs $250,000, that makes the fourplex version of that cheap condo $1,000,000. Would I buy a vacant fourplex full of 1-bedroom apartments in Westlake for $1,000,000? Not as of today (10/30/2014), I wouldn’t.
That said, you can’t normally buy a $1,000,000 fourplex with $100,000 down, but you can buy a condo in almost any part of Los Angeles, from West Hollywood to the Valley. Condominium units usually come in much better condition than a multifamily property, they often don’t have rent control, and maintenance is cheaper because the HOA pays most of it.
So when is a good time to buy a condo in L.A.?
Are you paying more than $2500 in rent? Do you have $100,000 that is making you less than 4% on your money? If the answer is yes to either of those questions, contact me and let’s look at your options. While a good 2-4 unit property is largely preferable as a pure investment, buying a condo and living in it can save you money in the meantime.