Veteran house flippers in the Los Angeles market generated record flipping profits in 2016. The Orange County Register reported profits averaging nearly $127,000 per flipped home in Los Angeles County, the highest in the region. The median purchase price for flipped homes was $362,121 and the median sales price was $489,000. Nearly 5,500 LA County homes or 7.6% of all homes sales in the area last year, were flips.
In gentrifying LA neighborhoods like Eagle Rock and Glassell Park, many homes are already listing above $800,000. The good news for fix-and-flip investors is that there are still neighborhoods across the Los Angeles Basin offering affordable homes and opportunities for fix-and-flip profits. Here are nine up-and-coming LA neighborhoods where home buyers are shopping:
Located only a few miles from downtown LA, Highland Park is undergoing a cultural renaissance. Trendy cafes and art galleries are opening in this neighborhood. Redfin recently ranked Highland Park as one of the top up-and-coming neighborhoods in the US, based on home sales volume and average price per square foot. Selling prices on Highland Park homes averaged $570,000 in Q2 2017, up nearly 14% year-over-year. The average sales price per square foot was 15% higher at $558.
Faircrest Heights is located on LA’s west side along the Pico-Fairfax Corridor. Business Insider lists Faircrest Heights as among the country’s 10 hottest up-and-coming neighborhoods. Faircrest Heights has approximately 900 single-family homes and is attracting home buyers as a result of its central location and classic Spanish Colonial architecture. A local realtor notes home prices in the Faircrest Heights community currently ranging between $500,000 and $1.2 million. The more expensive homes are usually found in the north and west parts of this neighborhood.
Monrovia sits in the foothills of the San Gabriel Mountains. Along with neighboring communities Azusa and Glendora, Monrovia is benefitting from a recently completed Metro Link extension that is improving rail service for area commuters. Numerous TV shows, commercials and even some movies have been filmed in Monrovia. Zillow reports median sales prices for Monrovia homes of approximately $636,000, which is up nearly 7% from last year. Median sales price per square foot is $442, which is above the $409 average for the Los Angeles-Long Beach-Anaheim Metro area.
Azusa is located in the San Gabriel Valley along historic Route 66. This community has a young population (average age of 28) and relatively affordable home prices. At present, the median price of an Azusa home is only $432,000, which is 9% higher than last year. The average price per square foot was below the LA area average at $315.
Glendora is only 23 miles from central LA and prides itself on having one of California’s top-ranked public school systems. Downtown Glendora was voted one of the best downtowns in the San Gabriel Valley due to its many popular cafes, restaurants and boutiques. According to Zillow, the median value of a Glendora home is $565,500, which is up roughly 3% from last year. The median price per square foot is $374 and well below the $409 average for the LA metro market.
Located north of downtown Long Beach, Wrigley is known for its older Spanish style homes, many of which were built before the 1940s. According to Zillow, Wrigley homes are some of the most affordable in the greater Los Angeles area with median home prices currently ranging around the low $500,000s, which is up approximately 7% less compared to last year. The median sales price per square foot for a Wrigley home is $380, which is well below the Long Beach average of $428.
City Terrace is a hillside neighborhood near East Los Angeles. Only 10 minutes from downtown LA, City Terrace also offers quick commute times to commercial areas in South Pasadena, Alhambra and El Sereno. This neighborhood is attracting young home buyers due to its affordable prices. City Terrace is also popular with college students because of its above average safety and walkability. Redfin notes median list prices for four-bedroom City Terrace homes of approximately $549,000 and list prices per square foot of $345.
Cypress Park is a Zillow top pick for hottest new areas in 2017. At one time this community was a major hub for LA freight train traffic. Cypress Park is experiencing a revival due to parklands that are expanding along the nearby Los Angeles River and a new bridge that connects Cypress Park to the Elysian Valley. The Los Angeles Times characterizes Cypress Park as “a renovator’s dream” because of its wide variety of housing styles, which include American Revival cottages, Craftsman, and Mediterranean Revival homes. At present, the median sales price for a Cypress Park home is $566,100. Cypress Park home values have already risen 8% this year and Zillow predicts another 2% rise next year
West Adams is a historic neighborhood in South Los Angeles known for its mix of Victorian mansions and Craftsman bungalows. The area was initially developed by railroad magnate Henry Huntington and industrialist Hulett Merritt and became the city’s wealthiest district in the early 1900s. The boundaries of the West Adams neighborhood are the Santa Monica Freeway on the north, Crenshaw Boulevard on the east, Exposition, Jefferson Boulevard on the south and Culver City’s Metro Link line on the west. At present, the median sales price for a West Adams home is $690,600, which is up 11% compared to last year. Demand remains robust, as indicated by days on the market. West Adams homes sell in only 25 days versus 42 days on the market for the average metro LA home. The median list price per square foot is $494 for a West Adams home, which is above the LA average of $477.