Are you thinking about investing in Los Angeles California or anywhere in the surrounding areas? If you are, then you’re probably asking yourself “what does a profitable investment property look like in Los Angeles“? Keep reading because we’ll cover that in this blog post and you might be surprised at the answer…
What Does A Profitable Investment Property Look Like In Los Angeles?
When some people start thinking about what characteristics make for a compelling real estate investment, they often start with the property itself. However, the very first step is to start with you and consider this…
How Do You Define “Profit”?
Most people would initially define the word “profit” as “the positive difference between what you paid for an investment versus what you made from the investment.” For example, if you paid $50,000 for a distressed property and spent $10,000 to fix up the property, then you’ll have invested $60,000 total; and if you can sell the house for $100,000, then you’ll have made a profit of $40,000.
However, profit is a big, vague word. And you can actually “profit” in a number of different ways. You’re probably already defining profit in terms of money as in our example above. But some investors look for other types of positive outcomes, too, such as:
- Enjoyment of the land — which might be the case if you buy and hold a piece of vacant rural land with the intention of using it to go camping or fishing while you wait for the value of the land to increase over time).
- Education — which might be the case if you want to get into real estate investing but you’ve never done it before; some investors might be willing to give up the profit if it means they get to work with an expert who can show them the ropes
And even if you’re only thinking in terms of money profit, you need to consider: how much profit? And, how much effort is required to get that profit? Technically investing $99,900 and selling for $100,000 is a profit (of $100) but no one wants to invest in real estate for such small sums.
The next consideration is the process — and how you plan to invest. If you’re wondering what does a profitable investment property look like In Los Angeles then you need to walk step-by-step through the process of how you plan to invest. For example, if you plan to rent the property or if you plan to buy, fix, and sell, then you need to crunch the numbers and make sure they work out. The two biggest questions are:
- How much can you acquire the property for?
- How much is required to fix up the property to get it ready to rent/sell?
Ultimately, you should be able acquire the property and fix it up for less than you plan to make off of the sale of the property or off of the accumulated rental income over time.
Here’s Our Best Answer
Here’s our best answer to the question, what does a profitable investment property look like In Los Angeles…
Find an investment that is attractively priced (compared to similar properties in the area), add as much value as you can (without spending too much), and then rent or sell for the highest price possible.
Frankly, this can take a lot of work to do on your own. Fortunately, you can work with a company like us here at Jennifer Buys Houses who specialize in this and can help you eliminate a lot of the guesswork and answer a lot of the questions. In fact, we’ve already done a lot of the legwork to identify what does a profitable investment property look like In Los Angeles and we’ve probably acquired some of the exact properties that may fit your needs.
So click here and enter your information or give us a call at (424) 242-9304 and we can show you some of the investment properties we have available.