Investors living in and around Los Angeles often consider buying properties out of state to get the best value for their money.
Real estate clubs in southern California often invite loan officers and real estate agents from growth-oriented cities to promote the value. Northeast of Los Angeles in the High Desert, home values can generate positive cash flow for investors.
Investing in a single-family home in the city of Victorville versus a duplex or other multi-unit building in Los Angeles can make financial sense.
“There’s an area between Highway 395 to the west, I-15 to the east and Highway 18 to the north that forms a triangle and homes in that area are worth pursuing,” said Peter Silvester of Keller Williams Realty.
“Investors can look at buying a single-family home with four or five bedrooms and two or three baths for $195,000. The price for existing homes is less than what you pay to build a new one.”
He told me four homes at that price are still less than a typical four-unit building in Los Angeles that can cost close to one million dollars.
“I know of a duplex in Eagle Rock that’s going for $690,000. One side has three-bedrooms and two baths and the other side has one bedroom and one bath. Again, for that price, you can own three or four homes in Victorville.”
Peter said the downside investing in the High Desert includes a long drive from LA unless the investor utilizes a property management company. He mentioned if tenants leave the place in a mess a large house is more to clean up than a smaller unit.
Still, the area has military families needing homes to rent and there is a variety of stable employment opportunities. Among the companies are Dr. Pepper Snapple Group, GE, M&M Mars, Boeing, and Newell Rubbermaid, according to the