What it’s really like to invest in Los Angeles

This week, we head to Los Angeles and hear from Casey TeVault at Casey Buys Houses about how he’s managed to turn a profit in this monster of a market for 15 years.

Average home price: $933,111 (Down 2.4% YoY)
Homes that sell over list price: 35.6%
Homes that sell under list price: 54.5%
Average rent: $2,750

The pros: L.A. is famed for its Hollywood ties, sun-drenched beaches, bustling business scene, and sky-high home prices. But TeVault insists there’s still money to be made in this market. “Investors here are playing the long game,” he says. “The demand for housing has continued to grow.”

The cons: Next to New Jersey, California has the least landlord-friendly laws, which are even stricter in the city of Los Angeles. And since L.A.’s infamously bad traffic forces many commuters to live close to the city, “There’s no more room for building. This is why we see so many knock-down rebuilds,” where investors demo small homes to make room for multi-family buildings or add ADUs.

His advice: Certain suburbs offer proximity to L.A. along with affordable prices—for buyers and investors. “My top four Los Angeles suburbs are Glendora, Diamond Bar, San Dimas, and Covina,” says TeVault. In Glendora, he recently bought a three-bedroom, two-bathroom house for $505,000, spent $186,000 on renovations, and sold it for $827,000.

Have a real estate market you’d like to highlight? Share it here, and we’ll feature it in the future.