Josh Flagg explains whether Diddy’s raids will affect neighbors’ real estate prices

We caught up with the ‘Million Dollar Listing Los Angeles’ star… who says Diddy’s residences are still worth a pretty penny — despite being linked to a Homeland Security sex trafficking investigation.

Los Angeles native Josh talks about the Bad Boy Records founder’s Holmby Hills estate, which Diddy scooped up for $40 million in 2014. The broker boasts of being centrally located in the A-list neighborhood and being in good condition… apart from the the feds destroyed it during the raid.

He tells TMZ… “If it goes on sale and it’s priced accurately, it will sell.”

However, he admits the value of the Los Angeles-area mansion likely won’t increase due to the “negative stigma” surrounding the estate. However, as Josh tells us, even the most blemished properties can find a buyer…just take a look at the Menendez house.

ICYMI…the Beverly Hills mansion where Erik And Lyle Menendez murdered their parents just sold for $17 million in March.

As for how all this legal drama will affect Diddy’s neighbors? Josh is also confident that the focus on Holmby Hills won’t hurt property prices in the long term.

This is good news for Kylie Jennerwho put his Holmby Hills property up for sale before the Diddy raids have been discontinued.