Househacking in LA on single income public school teacher salary?

[Kara Lorenzana]

Hi BP community,

First post ever! I've been reading up on the forums and listening to the BP podcasts, and switch from feeling really motivated to doubtful.  I am a total rookie and would appreciate any insights into my current situation :)

I am gearing up to purchase my first condo this August 2023 when my lease ends. I currently live in a fantastic townhome with 2 of my friends in the SGV area, and I pay $750 for my room and about $50 for utilities. My decision to buy instead of continue to rent is because one friend is moving in with her partner and the other friend is moving back to her home state. I decided that if I am going to pay significantly more for housing, it should probably be my own home at this point.

My plan is to slowly build a rental portfolio starting with a 2 bed 2 ba condo; live in one room rent the other out. I am pre-approved for $350,000 which doesn't get me much in LA, but some condos in the San Fernando Valley, particulary Van Nuys, North Hills, and Panorama.  My first question is: are those good areas to invest in or are there other neighborhoods worth looking at?

After living in the condo for 2-3 years and if the situation is ideal, I plan to take on a HELOC and use it to buy a second rental property. I'm sure there are more things to consider but as a rookie, this is about as far as I've gotten.

I guess my second question is: Is it possible to carry out this plan on my single income (I make about $73,000 a year gross) in the current Los Angeles County market? Or am I too much of an idealist??

Thanks in advance to anyone and everyone who can give me some nuggets of wisdom!