If you’re looking to invest in Los Angeles, it’s important that you niche down and find an area that works best for you. Not every location will be equally successful for everyone, so do your research and learn about the different types of investments you can make. Check out our latest post to learn more!
Although we will only discuss a few types of real estate niche, there are many ways to invest in and profit from Los Angeles real estate. Feel free to look at some possible niches below or give us a call with any questions you may have! We would be more than happy to chat with you about your options!
Residential Rentals
The most popular form of real estate investment is residential rental properties. This could be in the form of a single-family house, condo, townhome, or even a duplex, triplex, or quad. There are different amounts of involvement and responsibility you’ll need to take on depending on the type of niche you choose to invest in.
Owning a home in a private community with an HOA may reduce some of your obligations, at least those outside of the property. However, HOA rules might have their own drawbacks, so be sure that the goals of the HOA are compatible with yours to avoid problems, fines, and frustrations.
Vacation Rentals
The vacation rental niche has exploded with the rise of companies like AirBnB and VRBO. Homeowners all over the world are benefiting – earning in a week what they used to make in a month. Although the numbers look great on paper, there are some additional costs that come along with renting out your space. More cleaning will be necessary, and guests tend to not treat rentals as well as their own homes, resulting in increased repair expenses down the road.
Foreclosures and Short Sales
Foreclosures and short sales have the ability to generate a lot of money for those who are investing in them. Inexperienced investors may find it difficult to realize the profits they were told to expect or desire in this real estate niche. These sorts of investments are better left to people with more expertise in real estate investment.
Apartment Complexes
After you have a few houses in your portfolio, the next step is usually to buy a larger building with more apartments. This way, you have the potential to make more money. A mid-size commercial multi-family property has 5-40 units, and large complexes have 40+ units. Apartment complexes are ideal if you want to make a lot of profit without using too much land.
Office & Retail Space
Commercial real estate is not usually the first real estate niche that comes to mind, but it can be a great source of income. If you’re looking for a profitable commercial investment, pay attention to areas that are growing. Look into future development plans, and take note of any major retailers (such as Starbucks, Panera Bread, Wal-mart, Home Depot or Costco) that have moved in recently.
These companies spend millions researching an area before they decide to open up a new location – so if you see them moving in, it’s likely because the area is expanding rapidly. This makes it a great place to invest in an office or retail space.
Mobile Homes
Many people don’t think about investing in mobile homes, but their popularity is gradually increasing because they are so affordable. If you’re looking for a small real estate niche that can have big returns, this might be the niche for you. You could choose to either renovate and sell them, or fix them up and rent them out. With more people than ever wanting or needing to downsize, tiny homes are becoming an increasingly popular niche – making it a great time to invest in mobile homes as part of your overall real estate portfolio.
Land
Although the demand for land may not be as great as that of real estate containing a built structure, it’s still a market worth considering for the right investor. With land, there are no costs other than property taxes, which are significantly lower than those of houses. The property can’t be damaged either, so your risk is very low. You can either wait for the land to appreciate before selling or you can develop it into an income-producing property.
House Flipping
Although the popularity of flipping houses has decreased in recent years, there are still amazing profits to be found in Los Angeles. When you buy a property at the right price and renovate it quickly, you can turn a tidy profit. It’s essential to have systems in place as well as budgets so that you don’t get in over your head.
When it comes down to it, there are several options for investing in real estate in Los Angeles. And don’t forget, while finding your niche may be quite lucrative, diversifying your portfolio can never hurt! Discover your niche, but don’t be scared to look at alternative investment opportunities if the opportunity arises.
Get in touch with us now to discover your ideal niche for selling property in Los Angeles!
Interested in Learning More?
Ready to elevate your real estate game? Connect with Greater LA REIA today! Whether you’re a seasoned pro or just starting out, we’re your key to success in LA’s competitive market. Join us now to unlock invaluable insights, network with like-minded individuals, and propel your investments to new heights. Dial (424) 500-3280 or email us at greaterlareia@gmail.com to take the next step. Your thriving future in real estate begins here. Don’t miss out – seize this opportunity!
