LOS ANGELES — Two-thirds of real estate investors plan to keep property for more than a year rather than “flip” it for quicker profits, according to a survey by the California Association of Realtors.
The 2013 Investor Survey also found that three-fourths of California realty investors are of the “mom and pop” variety — owning one to 10 other properties as investments. Fifteen percent own just one property, 46 percent own two to five and 14 percent own six to 10.
Single-family homes were the preferred investment, making up 78 percent of 2013 transactions. Multi-family properties made up 14 percent. Meanwhile seven percent were other property types and bulk sales amounted to one percent.
Median sales price of an investment property was $272,500. More than eight out of every 10 investors made repairs to their investment properties, spending a median of $10,000 — or 4 percent of the median sales price. Investors spent a greater percentage (4.2 percent) of the sales price rehabilitating properties costing $250,000 or less than they did on properties costing $500,000 or more (3.4 percent)...