We recently sent out a deal in the Palms area (90034) located on the westside of town. This was an off market opportunity but unfortunately just a bit unrealistic on the pricing and not that motivated of a seller to make an adjustment on the price. When we send these deals out we usually get some pretty good feedback from our investors.. some of which we learn from.
A close investor of ours had told us that he actually disliked this good location because there was tons of rental competition i.e. it's tough to rent out your unit because there are so many other units trying to be rented as well. The palms location in 90034 is very dense with apartment buildings so in reality this does make a lot of sense from an owners perspective. Normally when you see a deal in a solid rental market you think that it is a home run (if the price is right) and you will be able to rent an upgraded unit for top dollar. Honestly, the thought of a good rental market having too much rental competition was something we had not given much thought to.
It is always nice to hear this kind of information from our trusted investors so we can share it with everyone else as well. Does this mean that the deal doesn't work for anyone? No.. everyone has different investment strategies but still an interesting topic.
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