The Los Angeles real estate market holds some of the best real estate investments in the current housing market. You just have to know where and how to find investment property that brings the best return on investment in this location.
In an overly competitive seller’s market where Los Angeles real estate prices are going up without an end in sight, simply spotting “For Sale” signs is not enough. A Los Angeles real estate investor needs a competitive edge from the very beginning of the process of buying an investment property.
That competitive edge? It’s Mashvisor’s real estate investment tools. Learn how to find investment property in the Los Angeles real estate market in the best way possible – with the ultimate real estate investment tools.
The First Step: Choosing the Best Neighborhoods in Los Angeles
Knowing you should invest in the Los Angeles real estate market is, unfortunately, not enough to hone in on the best real estate investments there. Not all Los Angeles neighborhoods will make for successful real estate investing. This is where heatmap analysis of neighborhoods comes in. Once you search for a city from Mashvisor’s homepage, you’ll be brought to a map of neighborhoods with available investment properties that looks something like this:
Clicking on “Explore the Data” takes you to the heatmap analysis which looks like this:
Are you keen on investing in Airbnb Los Angeles or long term rental properties? With either real estate investment strategy, the heatmap analysis above lets you see key factors for choosing the best neighborhoods in Los Angeles:
- Listing Price
- Airbnb Rental Income
- Traditional Rental Income
- Airbnb Cash on Cash Return
- Traditional Cash on Cash Return
- Airbnb Occupancy Rate
Listing Price
A lot of new and eager Los Angeles real estate investors are stopped in their tracks when they see the median property price for the Los Angeles real estate market (provided by Mashvisor’s investment calculator):
Median Property Price: $916,724
It’s up there, we know. But, with heatmap analysis, a Los Angeles real estate investor can find neighborhoods that have relatively more affordable investment properties compared to that median property price. So, don’t let that value deter you from investing in Los Angeles real estate.
Instead, use the heatmap to identify Los Angeles neighborhoods with a median property price $300,000-$400,000 lower (and maybe even lower than that)! These less expensive Los Angeles real estate prices are in locations marked in red, while the more expensive Los Angeles investment properties are in neighborhoods marked in green.
Traditional and Airbnb Rental Income
Ready to pay any price for a Los Angeles real estate investment as long as the rental income is high? Well, if that is your investment strategy for the Los Angeles real estate market, the heatmap analysis will also allow you to find investment property with this purpose in mind. Whether it’s traditional rental income you’re after or Airbnb rental income, the Los Angeles neighborhoods with lower rental income are in red and the higher ones, in green.
Traditional and Airbnb Cash on Cash Return
Invest in Los Angeles real estate for the return on investment. It’s why most Los Angeles real estate investors don’t run away from the investment property prices. Even though the average cash on cash return may not be ideal to invest in Los Angeles real estate (Airbnb: 0.86%, Traditional: 1.34%), heatmap analysis helps you find the return on investment you want. Select the best neighborhoods in Los Angeles with the highest cash on cash return from the color-coded map.
Airbnb Occupancy Rate
When it comes to investing in the Los Angeles real estate market for Airbnb, the Airbnb occupancy rate is as important as the Airbnb rental income. If a real estate investor chooses a neighborhood with high Airbnb rental income but very low Airbnb occupancy rate, this Los Angeles real estate investment may end up being a negative cash flow property!
Heatmap analysis can ensure that you don’t get that far in the process of buying an investment property that’s bound to lose money. Instead, it allows you to look at all of the factors (cash on cash return, rental income, occupancy rate, and listing price) before you commit to a Los Angeles real estate investment.
At this stage, you have landed on one of the best neighborhoods in Los Angeles.
Click here to learn all about our real estate investment tools and how we can help you make smarter and faster real estate investment decisions today.
The Second Step: Find Investment Property Worth Your While
Once you have found some of the best neighborhoods in Los Angeles that match your real estate investment strategy, you have to actually find investment property to make your cash investment worth it. Now it’s time to put the investment calculator to good use.
Mashvisor’s investment calculator, simply put, will allow you to see the kind of return on investment for the Los Angeles investment property of your choice. The way heatmap analysis shows all kinds of return on investment factors, the Airbnb calculator does the same to help you find investment property.
At this point, you would have clicked on a neighborhood from the heatmap analysis and be brought to the available Los Angeles investment properties. Click on an investment property of interest, and the investment calculator goes to work. It will look like this:
Aside from the price, the number of beds and baths, you can see the kind of other useful real estate investing information the investment calculator provides. It lets a real estate investor decide if the Airbnb rental strategy or traditional rental strategy is best by showing the rental income, cash flow, cash on cash return, cap rate, and occupancy rate for the investment property with each strategy.
Even more crucial when you plan to invest in Los Angeles real estate, the investment calculator allows you to adjust your expenses including things like insurance costs and mortgage financing. If you had done a little research before and talked to your bank, you can fill in this data, and the investment calculator can show you the unique return on investment you can expect with the Los Angeles investment property of your choice.
Compare a few select Los Angeles investment properties and find the one with the best return on investment. And, believe it or not, you’re done! That’s all it takes to find investment property in the Los Angeles real estate market.
Better yet, we have one more real estate investment tool. We saved the best for last.
How to Find Investment Property in the Los Angeles Real Estate Market: An Alternative
Acting fast is key to investing in the Los Angeles real estate market. While other real estate investors are making the mistake of buying investment property unseen or cutting down on other forms of due diligence, we can help you save time with the absolute best results for real estate investing.
That’s if you use the property finder tool. The property finder tool is a special real estate investment tool. What it does is to show you the absolute best Los Angeles investment properties out there. Rather than looking for the best neighborhoods in Los Angeles and comparing investment properties to find the best Los Angeles real estate investment, find investment property in literally seconds.
All you have to do is add your search criteria:
- City (or even cities if you’d like) where you wish to invest
- Your budget
- The rental strategy
- Number of bedrooms/bathrooms
- Type of Los Angeles investment property (single family homes, multi family homes, condos, coops)
What you’ll have is this:
A list of the best performing Los Angeles investment property with the highest return on investment will be right in front of your eyes, ready for you to choose the one that suits you best.
Whichever one of Mashvisor’s real estate investment tools you do choose to go with, you will enter the Los Angeles real estate market as a real estate investor with a serious competitive edge. No longer be intimidated by a seller’s market, high prices, or anything else in the real estate investing world. Not with such a companion by your side.
Don’t enter the Los Angeles real estate market without us! To start your 7-day free trial with Mashvisor and subscribe to our services with a 15% discount after, click here.