Flippin' Out in South Central

A recent L.A. times article pretty much sums it up: Real Estate today is not for the faint of heart. Nor has it ever been, for that matter. It's hard to believe that, just a few short years ago, droves of aspiring real estate moguls mistook once-in-a-blue-moon timing and market conditions as evidence of their investment saavy and business acumen. One needed only to sign on the dotted line to practically guarantee prosperity and success in a market that at its peak gave a twenty percent return on investment in a year. Those were the days...
The ether has cleared, the hangover has set in, and we are now challenged with the repercussions of our actions, leading to the biggest economic downturn since the Great Depression.
Forgive me, as I don't mean to rub salt in the wound for those of us who may be kicking ourselves today over hasty, but well-meaninged decisions made in the swell of inflationary headiness. What I am trying to stress is that, although Real Estate continues to be a sound investment instrument in the long term, you really must do your homework to uncover the full picture before leaping at the prospect of finding gold in a quick flip.
The good news is that saavy and experienced real estate investors are flipping houses in Compton because that's the area where the numbers are starting to make sense, even if the work is dirty and dangerous. Assuming that Compton continues to be an area of the city whose residents face some of the harshest economic realities, it stands to reason that this area will also hit 'bottom' first. The fact that real estate values are starting to bottom out to the degree that investors can come in and make a reasonable investment for rehab and still gain a return that makes the effort worthwhile, is encouraging news. Based on the sheer magnitude of unresolved and delinquent debt that's yet to be dealt with, I doubt that other sub-markets will reach stabalization as soon, but perhaps we are beginning to see a small ray of light at the end of a very long tunnel. Let's hope so.
Click here to see a map for House Flipping Hot Spots in the Los Angeles Area
To read the complete article: http://www.latimes.com/business/la-fi-south-la-20100425,0,3267386.story
Related Links: latimes.com
(photo courtesy of Los Angeles Times)