As part of our broader strategy of buying homes in cities with a housing shortage, we’ve directly acquired a three-bedroom, one-bathroom rental home in South Los Angeles. The neighborhood is ideal for young renters looking for a single-family home in an affordable yet convenient urban area.
Business plan
Following the completion of minor renovations, we intend to rent the property for seven to ten years before putting it on the market. The goal is to earn consistent cash flow from rent payments, while capturing what we believe will be strong appreciation in home values in LA’s emerging neighborhoods.
Why we invested
- Steps from transit: The property is less than half a mile from Western Station on the LA Metro’s Expo Line. The transit system connects South LA to Santa Monica and downtown, and is undergoing a major expansion in advance of the 2028 Summer Olympics.
- Fast-growing area: For the five-year period ending February 2018, the Zillow home value index in South LA has increased from $246,000 to $454,000, a trend that we believe will continue due to LA’s endemic housing shortage.
