At Red Blue Realty we’re watching as the housing market rises and newly profitable investment properties in Los Angeles are opening up. There are now many significant investment opportunities across the Los Angeles basin.
After all, new home inventories are low, and there are less houses available on the market. On top of that, investor confidence in real estate is taking off, starting on Wall Street. This makes today’s real estate market the perfect place for investors to purchase properties with confidence in their choice of investment.
We see that the real estate investment bubble’s collapse is over, foreclosure rates are slowing greatly, and rental properties are scarce. In fact the drive for finding rental units is spurring the investment market’s recovery in regard to housing investments.
Our team at Red Blue Realty believes that current housing prices are just over 30% below their peak. With borrowing costs also low, this is the time to dive into the housing investment market.
As noted, Wall Street is already on the band wagon, putting money into housing hedge funds and the U.S. Housing Recovery Fund, too. Red Blue Realty finds this positive forward momentum really taking off in the Los Angeles real estate market, and is offering these three profitable tips for moving into the purchase of investment properties in Los Angeles.
First of all, real estate investments today require less of a down payment by investors in order to turn a profit. With rents at an all time high, we suggest buying with a low down payment and using extra funds to improve purchased properties and make them more rentable and attractive.
Secondly, buy a single family home. In the LA real estate market, rent stabilization tenant laws don’t effect single family homes. Once some improvements are made, investors can very likely obtain higher rents for the area than other properties. Our tip, then, is to choose a single family dwelling as an investment rather than a two to four unit rental property. Another reason to buy a single family home is the fact that home renters usually stay longer than apartment renters. Less turn over to you, means less cost to your wallet. Another bonus: single family home renters often pay their own utilities, which means less monthly outlay there, too.
Our third tip is to get your loan pre-approved, not pre-qualified. With this certainly in hand, you’ll know exactly how much to borrow and at what rates, and what amount you’ll want to put down on a property. Take this tip us at Red Blue Realty and you’ll find yourself all set to negotiate an attractive investment opportunity, in a location you’ve selected, and on a property attractive to potential renters.
You’ll find that when you can offer an immediate quote, because you are pre-approved to buy, you’ll be able to close your deal quickly and move tenants in fast.
Once the deal is agreed upon, all you’ll have to do is close escrow, spruce up the property, and move your tenants in, charging a rent that will make a profit every month. Contact Red Blue Realty if you would like to buy your very own Los Angeles real estate.