Looking for a vibrant, dynamic city for your next house flip? Los Angeles remains one of the most attractive cities in the U.S. for real estate investors, especially those interested in flipping houses.
Read on to discover the top five neighborhoods in Los Angeles for house flips based on your unique investment goals.
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Why Los Angeles is ideal for house flipping
The Los Angeles housing market has endured even the toughest conditions thanks to strong demand and a wide range of property types and opportunities.
The market also has room for a variety of budgets, including affordable entry-level properties in emerging areas and luxury flips in more established parts of the city.
With a deep understanding of target buyer preferences, investors can find success within their niche.
What makes a neighborhood great for house flips?
The factors that make a neighborhood perfect for one investor may be the same factors that make it undesirable for another.
That’s why investors must understand their investment wants and ultimate goals to find the right property.
That said, certain universal elements determine whether a flip will result in a solid ROI or offer a greater risk than reward.
Affordability vs. ROI
House flipping typically aims to “buy low, sell high” to maximize profits.
Investors should look for properties that are undervalued due to the need for renovations or upgrades but are located in desirable or up-and-coming neighborhoods.
Market demand
Your success is strongly tied to buyer demand.
Neighborhoods with strong demand will see homes selling quickly and the potential for multiple offers.
Time is money in house flipping, so the longer your renovated home is on the market, the lower your ROI.
Availability of properties for renovation
Not all homes in a neighborhood have the same flipping potential.
Look for the following features from strong house-flipping candidates:
- Charming older homes that need to be updated
- Undervalued properties with cosmetic issues that you can transform
- Homes with older, segmented layouts that can be opened up or expanded
New investments and growth
Successful house flippers excel at identifying neighborhoods on the cusp of gentrification.
They also stay informed about city development plans or incoming retail and commercial investments.
These types of neighborhoods tend to attract young families and professionals seeking affordable homes close to amenities.
Top 5 neighborhoods in Los Angeles for house flips
Which Los Angeles neighborhoods hit the mark for profitable house flips?
Here are our top five picks.
1. Highland Park
Highland Park has become one of LA’s trendiest neighborhoods thanks to gentrification.
It’s close to downtown LA and offers a mix of modern and vintage homes.
Property values are rising, but opportunities still exist for flippers looking for a well-priced fixer-upper.
- Median home sale price in Highland Park: $1.2 million
- Average rent in Highland Park: $1,600 per month
2. Echo Park
Echo Park is another area known for its unique, older homes with renovation potential.
The neighborhood is gaining popularity among young professionals, especially with its proximity to downtown LA and Silver Lake.
- Median home sale price in Echo Park: $1.3 million
- Average rent in Echo Park: $1,900 per month
3. Silver Lake
Silver Lake is among LA’s most popular neighborhoods, perfect for young adults, professionals, and aspiring artists and musicians.
It is known for its unique architecture and diverse community.
Although some properties here might require a larger upfront investment, buyers will pay top dollar for modernized properties.
- Median home sale price in Silver Lake: $1.6 million
- Average rent in Silver Lake: $2,100 per month
4. Eagle Rock
Eagle Rock is a more family-friendly option, with opportunities ranging from older properties needing upgrades to homes requiring cosmetic improvements.
Residents love the calm, beautiful area, proximity to Highland Park, and local entertainment, restaurants, shops, and other amenities.
- Median home sale price in Eagle Rock: $1.5 million
- Average rent in Eagle Rock: $2,200 per month
5. West Adams
West Adams has a number of charming, historic homes at more affordable prices that are ready to be updated and carefully preserved by the right investor.
New businesses and infrastructure are boosting home values, attracting more residents, and ensuring house flippers can earn a high ROI from their investments.
- Median home sale price in West Adams: $1.2 million
- Average rent in West Adams: $2,700 per month
How to choose the right neighborhood for your investment
We’ve discussed the factors that make neighborhoods great for house flips and explored the top five areas in LA, but you still may be wondering how to weigh a solid investment based on your individual needs.
To help you determine this key piece of the puzzle, let’s take a look at some questions you can ask yourself to effectively “zero in” on the right neighborhood.
1. What’s your budget?
Every investment should begin with a thorough evaluation of your budget.
This helps you narrow down which areas you can comfortably afford, including the cost of the property as well as the renovation and holding costs, such as a monthly mortgage payment.
Share your scenario with a reputable private money lender to determine how much you could borrow to cover purchasing and renovating a property.
Marquee Funding Group is located in California, and our team has extensive experience with the LA housing market.
2. What are your renovation skills?
Your house-flipping skillset and experience can help you narrow down the right neighborhood and project type.
Building the connections a house flipper needs to execute large-scale projects takes time, so a less experienced flipper may stick to improvements they know they can largely take on themselves.
In addition, the cost of hiring a contractor may eat into the pre-planned budget.
3. What is the neighborhood’s reputation and safety?
Safe, well-maintained neighborhoods make prime flipping opportunities.
Evaluate the crime rates, school district quality, and overall neighborhood appeal, including signs of neglect.
Distressed properties make excellent investments, but to attract buyers, they must be located in healthy, desirable, or up-and-coming neighborhoods.
Set yourself up for success: Apply now with Marquee Funding Group
Ready to jump into the LA fix-and-flip market? You need the right team to back you up.
Marquee Funding Group offers quick, flexible fix-and-flip loans to borrowers who want to invest in lucrative real estate projects.
Submit your loan scenario today for a quick review, or call us at (818) 222-5222.