Answer
What's a good cap rate to buy at in LA?
There's no single 'good' cap rate — it depends on the submarket, unit count, rent regulation, upside, and your cost of capital. A 4.5% cap on stabilized Santa Monica coastal product can outperform a 6.5% cap on regulated Wrigley product over 10 years. Frame it as risk-adjusted return, not just yield.
The right question
Not 'is this cap rate good' but 'what's my going-in yield relative to my cost of capital, and what's my expected exit cap in 5–7 years?' Positive spread + reasonable exit assumption = deal.
The trap
Chasing cap rate into deteriorating submarkets, deferred product, or hostile regulation. Higher cap rate + higher risk isn't the same as higher return.
Local context
This answer reflects how deals actually trade in Cameron Samimi's core coverage area: the South Bay (Torrance, Redondo Beach, Hawthorne, Lawndale, Gardena, El Segundo), Long Beach (Alamitos Beach, Belmont Heights, Wrigley, Bixby Knolls, Downtown), and Westside LA. Pricing, rent regulation, and buyer depth differ materially between these submarkets — verify the specifics for your property before acting.
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