Buyer's Market is Bringing Investors Back to DTLA

There are two types of buyer's markets. When it tips in favor of standard buyers, and investors. Right now, DTLA is where it's becoming more investor friendly, meaning prices are immensely affordable. Where else can you find a condo for $298K, in a historic Mills Act building where the owner gets to take advantage of the best kept secret--the Mills Act property tax savings. And where else in LA can you get a loft in a historic building or a unit in a luxury highrise with a pool, gym and front desk for under $600K? 

It's starting to make sense for investors, as well as buyers from the east coast, SF, etc who want a second home base in LA. It's also making sense for buyers who want to diversify and put their funds in other assets that have a tax benefit as well as income generating potential.

Some amazing PRICE/SF deals:

746 S. Los Angeles St #403 - Mills Act loft at the Cornell Building

849 S. Broadway #603/#602 - Mills Act loft at the Eastern Columbia Building (Foreclosure)

315 E. 8th St #401 - Mills Act loft at the Textile Building

1111 S. Grand #1102 - Luxury condo at the Elleven Building

1155 S. Grand #516 - Luxury condo at the EVO Building

889 Francisco #1206 - Luxury corner condo at Metropolis

Good News for Investors

Those who own multiple homes and investment properties have some good news coming. With housing prices high and more or less remaining high (even with micro ups and downs), more people will remain renters. Many who have thought of buying will continue to rent longer.  And more renters means more demand for rental housing. Landlords can expect to benefit from this.

A client of mine was planning on selling to buy a larger home. I ran some numbers and it turns out she would have pretty good cash flow on her current home since rents have gone up a lot in her neighborhood. And her property isn't under rent control laws. Her lender has increased her borrowing amount based on this potential income. She is now going to keep this property, rent it out, and buy her larger dream home. This is when real estate gets fun.