Los Angeles MFR

[Benjie DeVera]

If there's an MFR (2-4 units) in LA in which the total rental income covers PITI (principal, interests, taxes and insurance), wouldn't this still be considered a good deal?

Here are my thoughts:

1) I would build equity, get the tax advantage write-off, and appreciation of the property. On paper, it wouldn't necessarily have a cash flow (not maybe until after a couple of years as rents go up) but it's still self-sustaining.

2) I can personally manage the property as a landlord since it is close to where I live.

3) For maintenance and repair expenses, wouldn't my insurance cover big expenses?

Would like to hear input/thoughts from other investors who live or have lived in large & expensive metropolitan areas, where 1% or 2% rule isn't there.