{"id":428881,"date":"2010-03-15T08:36:42","date_gmt":"2010-03-15T12:36:42","guid":{"rendered":"http:\/\/www.foreclosuredeals.com\/wp\/?p=5353"},"modified":"2010-03-15T08:36:42","modified_gmt":"2010-03-15T12:36:42","slug":"los-angeles-foreclosure-investing-in-properties-for-rental","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/428881","title":{"rendered":"Los Angeles Foreclosure Investing in Properties for Rental"},"content":{"rendered":"

Los Angeles foreclosure investing<\/a> in single-family or smaller multifamily properties for rental is viable even during the downturn, according to moderately-capitalized investors in the metro area.<\/p>\n

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According to Johnny Caal, owner of six small Los Angeles County rental properties, he is still looking at Los Angeles foreclosure listings<\/a> for properties that can be converted into rental complexes. He added that there is still a market for affordable but quality rental housing.<\/p>\n

In 2009, as rents went down and vacancy rates climbed up in big apartment complexes, smaller multifamily housing properties that can be managed more easily at lower costs thrived. Apartment properties<\/a> with 15 units or less are not required by law to hire an onsite manager, cutting management costs.<\/p>\n

According to real estate firm Marcus & Millichap, while a lot of prominent apartment complexes for sale in 2009 did not get purchase offers, a total of 552 multifamily properties<\/a> with 5 to 49 units got sold. In contrast, only 15 multifamily properties with more than 50 units got sold in 2009 and only 16 properties with at least 100 units got the attention of businesspeople focused on Los Angeles foreclosure investing.<\/p>\n

The prices of multifamily properties have also been falling, making them more affordable to investors. Last year, the median for a multifamily unit dropped by four percent from 2008 to about $128,500, giving opportunities for medium-capital investors to acquire smaller buildings and multifamily properties in pre foreclosures in Los Angeles<\/a>.<\/p>\n

It was in April 2009 that Caal acquired his 6-unit apartment building through an innovative contract with the seller. Because of the poor condition of the building, no lender was willing to provide a loan for the purchase of the apartment. Caal negotiated with the seller, proposing to repair the building and then complete the purchase after a lender approves a loan. After several months of repairs, Caal was able to take out a loan to purchase the building.<\/p>\n

Caal said he remains interested in lower-priced distressed multifamily properties with great prospects, but he observed that many owners do not like to sell their properties despite financial difficulties because of low prices. He explained, however, that in some instances, real estate owners need to analyze their finances and sell their assets to cut their losses.<\/p>\n

With a number of distressed multifamily buildings in Los Angeles, investors with experiences in rental properties can consider Los Angeles foreclosure investing and take advantage of lower-priced multifamily properties in the metro area.<\/p>\n

Find great foreclosure investments in other California Cities:<\/p>\n