House flipping in Los Angeles can be lucrative if done right and during certain real estate market conditions. The city has a growing population, many of which are from all over the world. The home values in Los Angeles have increased dramatically since the Great Recession ended, making the market competitive for house flippers. One of the largest employers is the state of California and the city has a lower unemployment rate than the rest of the state. With a sunny climate, and situated between the expansive Pacific Ocean and the San Gabriel Mountains, Los Angeles is in a prime location for people who like the outdoors and a relaxed lifestyle. There are many homes built in previous decades that are prime for fixing up for house flippers.
Key House Flipping Statistics for Los Angeles
|Population||3,999,759 and a 5 year growth rate of 4.9%|
|Income||Average Household Income of $65,006 and 5 year growth rate of 13%|
|Home Value||Average price of 3 bedroom 2 bath home of $659,000 and 5 year growth rate of 44%|
|Cost of Living||Los Angeles is 142 vs 100 for the U.S. cost of living|
|New Home Starts||29,621|
Los Angeles Property Taxes
Los Angeles County
The median property tax in Los Angeles County, California is $2,989 per year for a home worth the median value of $508,800. Los Angeles County collects, on average, 0.59% of a property’s assessed fair market value as property tax.
The average yearly property tax paid by Los Angeles County residents amounts to about 3.68% of their yearly income.
If a property is considered the primary residence of the taxpayer, a homestead exemption may exist.
The median property tax in Ventura County, California is $3,372 per year for a home worth the median value of $568,700. Ventura County collects, on average, 0.59% of a property’s assessed fair market value as property tax.
The average yearly property tax paid by Ventura County residents amounts to about 3.61% of their yearly income.
The median property tax in Orange County, California is $3,404 per year for a home worth the median value of $607,900. Orange County collects, on average, 0.56% of a property’s market value as property tax.
On average, about 3.56% of resident’s yearly income is paid as property tax by Orange County residents.
Orange County Property Tax is levied directly on the property. Unpaid property tax can lead to a property tax lien, which remains attached to the property’s title and is the responsibility of the current owner of the property.
For properties considered the primary residence of the taxpayer, a homestead exemption may exist for properties considered the sole residence of the taxpayer in Orange County. This can lower the appraised valuation of a primary residence, resulting in a lower annual property tax rate for owner-occupied homes.
A Homestead Exemption may also help protect your home from being repossessed in the case of a property tax lien due to unpaid Orange County property taxes or other types of other debt.
Other Key Information
Los Angeles has faced some flooding in the city as recently as 2016 due to some intense downpoors.
Los Angeles County Public Works Flood Zone Determination Website
Using FEMA data, the Los Angeles County Department of Public Works has developed a public-facing web viewer for accessing flood zone information in the County of Los Angeles
FEMA Flood Insurance Study 2016 for Los Angeles County and incorporated areas:
|Los Angeles Crime Rate||347.1 crime index versus 280.5 U.S. average|
Los Angeles Transportation
The Los Angeles County Metropolitan Transportation Authority (Metro) is an agency that operates public transportation in the Los Angeles metropolitan area. This includes bus, light rail, heavy rail and bus rapid transit services.
Metro Rail is a rail mass transit system with two subway and four light rail lines. The system runs a total of 105 miles, with 93 stations. Blue, Red, Green, Purple, Gold, and Expo Lines make up the routes.
Metro Busway is an express bus system with two lines operating on dedicated or shared-use busways. The system runs a total of 60 miles with 28 stations.
MetroBus operates in the Los Angeles Basin, the San Fernando Valley, and the western San Gabriel Valley.
Metro Local buses are painted in an off-orange color which the agency has dubbed “California Poppy
Metro Rapid buses are distinguished by their bright red color which the agency has dubbed “Rapid Red”.
Metro operates two transitways that carry multiple bus routes for part of their trips through Southern California.
Bike paths and bikeways run 475 miles throughout the city for commuter and recreational purposes.
Metrolink is Southern California’s regional commuter rail system servicing the larger Los Angeles metro area as well as Oceanside in San Diego County.
The Regional Connector is a tunnel under Downtown Los Angeles which joins the Gold Line at Little Tokyo Station to the Blue and Expo Lines at 7th Street/Metro Center.
Los Angeles Subway
Purple Line Extension
Three new subway stations at Wilshire/La Brea, Wilshire/Fairfax, and Wilshire/La Cienega will arrive with Phase 1 of the Purple Line extension. Further extentions will carry the line to Century City and Westwood. Construction of the second section started in 2018.
There are many new transit projects planned, funded or underway in Los Angeles to take place over the next 40 years.
For more information see LA Metro Maps and Timetables
The main international and domestic airport serving Los Angeles is Los Angeles International Airport (LAX), 18 miles southwest of Downtown Los Angeles. There are other major airports in the city as well.
Neighborhoods to Flip Houses in Los Angeles
Median Home Value in Mt. Washington is $596,534. This neighborhood is situated on the northern side of the city. Public schools are not as good as other parts of the city, but nightlife and family environment scores well.
A more expensive area of the city, Silver lake has a median sales price of $1,100,000. The average price of real estate has increased 12% over the last year. Crime is low compared to the rest of Los Angeles. Ivanhoe Elementary School is a highly rated school in this neighborhood.
This neighborhood has a median sales price of $643,000 and is located north west of the downtown area of the city.
Los Angeles is such a large and diverse mega-city that is primarily composed of separate houses, low level apartments and condos for residents. This means there are potentially many opportunities for house flipping in one area of the city or another at any given time.
House Flipping Resources in Los Angeles
Financing Real Estate Deals in Los Angeles
Many foreclosure auction listings can be found online and take place at various locations around Los Angeles.
County of Los Angeles Auctions
County of Los Angeles Sheriff Sales
Los Angeles County Property Tax Portal
CA Proposition 13 Property Tax information
County of Los Angeles Treasurer and Tax Collector
Los Angeles County Asessor Portal
Los Angeles County Department of Regional Planning
Los Angeles County Department of Building and Safety
LA County Dept. of Regional Planning Maps & GIS
LA County Dept. of Regional Planning Map Catalog
County of Los Angeles Real Estate Records
Los Angeles County Online Property Database
Building Code and Permits
Los Angeles County Building and Public Works Building and Safety
County of Los Angeles Building Permits
Los Angeles County Public Works Building Permit Viewer
Los Angeles House Flipping Tips
Perhaps try and sell to a professional buyer that can skip some of the time consuming steps of buying a home. Also, get to know the neighborhood and all of its strong points. This can help you persuade a potential buyer of the property.
Do not get too emotionally attached to the home.
What to Look Out For
Look out for homes owned by banks or others that the sellers are looking to sell quickly. Getting the help of a good realtor who can connect you with these sellers is a good move.
Real Estate Flipping and Investing Groups in Los Angeles
Los Angeles Real Estate Investor’s Club
Best Los Angeles Real Estate and Investment Club
Los Angeles House Flipping Outlook
Many homes were built in previous decades that are prime for fixing up for house flippers in Los Angeles.
Los Angeles is in a prime location for people who like the outdoors and a relaxed lifestyle due to a sunny climate, and situated between the Pacific Ocean and the San Gabriel mountains.
Los Angeles has a large and diverse economy made up of many industries. The city has a growing population, many of whom come from outside the area looking to buy homes. The home values in Los Angeles have increased dramatically since the Great Recession ended, making the market competitive for house flippers.
House flipping in Los Angeles can be lucrative if done right and during certain real estate market conditions.