Los Angeles Neighborhoods: What Real Estate Professionals Need To Know

In our last article on Los Angeles, we talked about how the downtown area has been dramatically revitalized. The last decade has seen a huge boom in construction and renovation, as condos, apartments, mixed-use multi-family buildings, restaurants, stores, world-class museums, and other attractions have poured in. This is bringing a lot more residents and, for fix-and-flip and residential rehab professionals, exciting new opportunities.  

You might raise up a couple of objections here, the first being that you aren’t interested in investing in a nine-figure building project, and probably aren’t going to be selling your contemporary art to the new Broad Museum. That’s fine. But when a downtown area becomes revitalized, and when new industries (like tech) bring in new residents, everything grows along with it. There is plenty of work and plenty of jobs for people who understand how to adapt to the new economic climate. A hard money loan from Socotra can help you flip a residence into something the market will love. These are the Los Angeles neighborhoods that are set to grow or to keep growing, and ones you should consider looking into.

Los Angeles Neighborhoods For the Fix-and-Flip Pro

Downtown LA

Downtown LA (DTLA) is not an area that makes people think “residential,” and the new high-rises seem to squeeze out smaller contractors. But what they also do is raise rents in the area, generating more profits as well as causing people move into outlying areas within DLTA. It’s a basic law of economics and real estate: as some people move in, others move out. That is an opportunity for the conscientious developer.

In DTLA sub-neighborhoods like Bunker Hill, there are living spaces ready to be renovated for residents who don’t want to live in one of the new mixed-use buildings, which are perfect for people looking to do a fix-and-rent. The Arts District still has plenty of lofts ready to be renovated. South Park is one of the hotter areas, but there are still places to buy that can then be renovated for residential use (as the area is continually rezoned) and then sold or rented at a profit. Whether you are looking to rent to the new class of tech wizards or the construction crews coming in to rebuild LA, there is plenty of opportunity all over.


One of the most prominent neighborhoods in Los Angeles, Pasadena is best known for its Rose Parade, its little old ladies, and the feeling that its best days are behind it. Anyone who lives there know that isn’t true. Downtown Pasadena is rebuilding, and houses that were once dilapidated are beginning to be renovated. With its access to the light rail, and its walkability as a self-contained city-in-a-city, Pasadena could be on the verge of a big comeback. Already, restaurants and stores are making their presence felt. Getting a residence here and fixing it up could be a great investment strategy.


If you want to take advantage of DTLA without living there, Hollywood is a great place. The movie studios are all but gone, and the crime that riddled the area in the 80s and 90s has subsided. These have been replaced by restaurants, stores, nightclubs, and other attractive amenities. Even more than that, two subway stations have opened, providing great public transportation for people who work in San Fernando Valley or Los Angeles.

There are a lot of tourists, but they mainly flock to just a few streets, and can be avoided. The backside of Hollywood is great for residents: particularly artists, actors, bohemians, and people who want to be bohemians but live well. It is a neighborhood where the problems of yesterday are opportunities for tomorrow. Houses and multi-families that need work can be bought inexpensively thanks to a distressed economy, and then rehabbed and sold as prices continue to rise. It’s an ideal location for the residential fix-and-flip market.

Some of the other important neighborhoods to look at are

  • Silver Lake
  • Echo Park
  • Los Feliz
  • Cypress
  • Lakewood
  • Artesia
  • Newhall
  • Culver City

Los Angeles is vast and sprawling, a million smaller cities inside an immense one. Los Angeles neighborhoods are their own ecosystems. In a changing city, a smart contractor who understands the region, and who partners with Socotra Capital for equity-based hard-money loans, can take advantage of the seismic shifts to do great work and make solid profits. In the end, that’s what California has always been about.

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