Real estate investing in Los Angeles, from an investor who does it too
Whether you’re buying your first rental, growing a portfolio, or deciding what to do with a property you already own, I help you run the numbers the way an investor would. I own 17 rental units across three states, so I know the math and the tradeoffs firsthand.
- CA Real Estate Broker, DRE #01884303
- LAMERICA Real Estate
- BiggerPockets case study, The House Hacking Strategy
Is Los Angeles a good place to invest in real estate?
It can be, but it’s a different game than most markets. High prices mean rental properties in Los Angeles rarely produce strong cash flow when bought with a standard down payment. Most LA investors build wealth through appreciation, value-add strategies like adding an ADU, and owner-occupied strategies like house hacking. Many also use the equity they’ve built here to buy cash-flowing rentals in other states through a 1031 exchange. Local rules, including rent control and tenant protections, also shape what makes sense. The right approach depends on your goals, your capital, and how hands-on you want to be.
Ways to invest in Los Angeles
House hacking
Buy a 2–4 unit property or a home with an ADU, live in one unit, and rent the rest. Owner-occupied loans can allow a lower down payment. It’s how I started.
Adding value with an ADU
Adding an ADU to a property you own can create rental income and increase its value. The numbers depend on construction costs and local rents.
Assumable mortgages
Take over a seller’s lower-rate FHA or VA loan to improve the numbers on a purchase.
Learn how it worksTrading up with a 1031 exchange
Sell a property and reinvest the equity, tax-deferred, into something larger, more passive, or in another state.
How 1031 exchanges workInvesting out of state
Use LA equity to buy cash-flowing rentals in other markets. I do this myself and can connect you with vetted agents where you’re buying.
See how I did itAlready own a rental? Keep, sell, or exchange
Many of the investors I work with already own property and are deciding what to do next. Start with the numbers, then choose the path.
See your options
A free Equity Review compares keeping, selling, renting, refinancing, and exchanging, side by side.
Request a reviewSell a rental
How I sell tenant-occupied properties and homes with ADUs, with the next step planned before listing.
See how I sell rentalsPlan an exchange
Standard, reverse, improvement, and out-of-state exchanges, plus DSTs for owners who want to go passive.
Explore 1031 exchangesWhat every Los Angeles landlord should know
Owning rental property in Los Angeles comes with rules that can change your numbers. Before you buy, or before you decide whether to hold, it’s worth knowing which apply to your property.
Rent control
Many older apartment buildings in the City of Los Angeles fall under its Rent Stabilization Ordinance, and California’s statewide rent cap covers many other rentals. Which rules apply depends on the property’s age, type, and location.
Tenant protections
Just-cause eviction rules and local protections limit when and how a tenancy can end. They affect everything from how you screen tenants to how you plan a sale.
Measure ULA
The City of Los Angeles charges an additional transfer tax on sales above certain price thresholds, which adjust each year. It can affect your net proceeds when you sell.
These rules change often, and I cover updates in my weekly newsletter. For a specific property, an Equity Review is a good way to see how the rules affect your numbers.
I invest the same way I advise
I started as a house hacker and became a case study in BiggerPockets’ The House Hacking Strategy. Later, I exchanged my LA condo into seven rental units across two states. When I sold my own Granada Hills home, I combined the home sale exclusion with a 1031 exchange on the ADU. Every strategy on this page is one I’ve used myself.
- 17rental units I own
- 3states I invest in
- 15+years in LA real estate
Keep learning
Weekly newsletter
Investor insights, LA policy updates, new listings, and the latest podcast episode. Join 3,000+ subscribers.
Subscribe on SubstackThe Key to the City of Angels
Conversations with the people shaping LA real estate, including lenders, intermediaries, and investors.
Listen to the podcastBlog
Guides and analysis for LA investors, sellers, and buyers.
Read the latestFrequently asked questions
Can you get cash flow from a rental property in Los Angeles?
It’s difficult with a standard down payment, because purchase prices are high relative to rents. Investors who find cash flow in LA usually do it through a larger down payment, a lower interest rate such as an assumable loan, house hacking, or adding an ADU. Many investors instead build equity in LA and buy cash-flowing rentals elsewhere.
What is house hacking?
House hacking means buying a property with more than one unit, like a duplex or a home with an ADU, living in one unit, and renting out the rest to help cover the mortgage. Because you live there, you may qualify for owner-occupied financing with a lower down payment. I started this way, and my story is a case study in BiggerPockets’ The House Hacking Strategy.
Does rent control apply to my property?
It depends on the property’s age, type, and location. Many older apartment buildings in the City of Los Angeles are covered by its Rent Stabilization Ordinance, and California’s statewide rent cap applies to many other rentals, with some exemptions. The rules change often, so check your specific property before buying or deciding to hold.
What is Measure ULA?
Measure ULA is an additional transfer tax the City of Los Angeles charges on property sales above certain price thresholds, which adjust each year. If your property is near a threshold, it’s worth factoring into your pricing and net proceeds.
Can you help me buy property out of state?
I’m licensed in California, so I don’t represent purchases in other states. What I can do is help you plan the move, including the sale here and the 1031 exchange, and connect you with a vetted agent in the market you’re buying in. I invest in three states myself, so I know how that process works.
This page is general information, not legal or tax advice. Rent control rules, tenant protections, and transfer taxes change often. Confirm the rules for your specific property.
Let’s run the numbers
Whether you’re buying your first rental or deciding what to do with the ones you have, a free Equity Review is the best place to start.
323.929.7653