20 Nov More Investors Are Focusing On Class C Apartment Buildings In Los Angeles
The demand for Class C Apartment Buildings has reached record highs over the last 18 months as more investors in Los Angeles have been searching for these properties than ever before.
Why are investors scouring the market for Class C Apartments? The reason is simple. During times of economic uncertainty, Class C apartments typically perform better than Class A or Class B rental properties.
Investors want to make money; and it makes more sense to hold Class C properties that are in demand, compared to holding Class A or B properties that may sit vacant for months while the economy recovers.
Will The Demand Continue?
Depending on whom you ask, the economy is either ‘on fire’, or it’s really bad in California, but regardless of your position on how California’s economy is doing one thing is clear, the institutional rental market is hot and flush with cash right now.
Investors are looking for Class C rentals and it’s not uncommon to see investors in Los Angeles, San Diego, or Denver compete for smaller properties at a 4-cap rate because there is a lot of upside with these properties.
The key to success right now for institutional investors is being able to execute and show proof of funds, instead of having to provide bank statements at the last minute to show where the money is coming from.
Are More Investors Leaving, Or Staying In Los Angeles?
Let’s face it, Covid-19 pushed a lot of investors to leave California, while other investors have decided to exit the state due to issues like political risk and rent control.
The big question is California dead for investors?
The answer is no.
As with any state, there’s always going to be unknowns and risks involved with staying put and this is one reason why many investors are doubling down to stay in Los Angeles while other investors exit.
As the rental market slowly begins to normalize after the long spate of lockdowns, hiring a property manager becomes more important for investors. A property manager will save the investor the hassle of managing their rental themselves while staying on top of changing laws.
Contact MW Real Estate Group
At MW Real Estate Group, we specialize in Los Angeles property management and can save you the hassle of property management while giving you peace of mind in knowing that your property will rent for top dollar.
To learn more about the services that we can offer you, contact us today by calling (213) 927-2117 or click here to connect with us online.