So.Cal Market Investment Strategy - Posted by CIO
Posted by CIO on September 20, 2004 at 13:14:59:
After several months of attempting to invest in So.Cal specifically the Los Angeles area I’ve begin to get a tad bit frustrated.
Home prices are soaring @ an unprecedented rated,I’ve been out bid on several properties. I comb the MLS on a daily basis searching for potential investment properties.
Fixers are list @ the same price as turnkey homes in move-in condition & also receive multiple offers driving their prices up several thousand dollars over the list price no longer making them suitable “flip” candidates,once you factor in holding cost in addition to rehabilitation cost it virtually elimates your profit margin.
I’ve expanded my “primary serivce area” to outline areas such as Kern County & I have yet to find anything worthwhile,it seems all the L.A. based investors have run out there & bought up everything in most cases they are barely breaking even.
So what tactics do you employ in a market where fixers in a non-desirable area are being listed @ 425K & the listing agent is reviewing offers on Monday @ 1pm & he or she will be receiving anywhere from 6-10 offers & most of whhich will be anywhere from 10K-20K over the asking price?