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Investing in Los Angeles Multi-Family Real Estate
Los Angeles is one of the largest residential multi-family markets in the country, with more than 1,500 duplexes, triplexes, fourplexes and small apartment buildings typically on the market at any given time across the county.
You'll find the most reasonably-priced 2-4 unit properties in East LA, South LA and the San Fernando Valley. This is where a lot of people get their first toe-hold into the LA housing market by buying a duplex and using the income from one side to offset the mortgage.
When you move over to the Westside you'll find a higher price-per-unit and your cap rates will be lower, but there's always strong tenant demand in those areas and the long-term appreciation historically has been better.
Before you invest in LA duplexes you should get spun up on all the rules around rent control and "just cause" evictions included in the LA Rent Stabilization Ordinance and California statewide AB 1482.
New construction and ADU conversions have become a big part of the LA multi-family picture too, with state ADU legislation letting owners add units to existing lots. If you purchase a home with an ADU you can opt to rent it out to long-term tenants or you can do short-term rentals with it to offset your expenses. Long-term tenants will probably generate less revenue but they're a lot less hassle than having new tenants all the time and cleaning/repairing the property between them.





