Starting to Strategize First Rental Property in Los Angeles

[Joseph Nahm]

Hey there, BiggerPockets community!

This is my first time posting here. My name's Joe, I'm 23, and I've recently caught the real estate bug after reading Brandon Turner's Rental Property Investing book. I'm living in Los Angeles and I'm interested in house hacking for a few reasons:

1. I'd love to manage my first property hands-on.

2. I prefer living in a house over an apartment.

3. I want to build equity, and cash flow is not my immediate concern (since I know breaking even in LA can be a challenge). Hopefully with a house hack, breaking even is possible.

I've started some preliminary research, but I'm trying to figure out my next steps. My goal is to make an offer by July 2024 at the latest, though I'd be thrilled to move sooner if the opportunity arises (as early as November 2023). I know the current market is rough, but I'm trying to act on the advice by not timing the market, but getting started early.

My current plan includes attending a few meetups, visiting open houses, and networking with real estate agents, primarily in West Los Angeles. That said, I'm flexible and open to exploring other neighborhoods too.

A bit more about me - I've been working as a remote software engineer starting exactly a year ago, and my annual salary is around 190K. However, my job's stability is somewhat uncertain due to the current volatility in the big tech industry. This has further motivated my venture into real estate investing.

I'm a complete rookie in this space but am hungry to learn and connect with those willing to share their experiences or insights. If you have any advice, know of helpful resources, meetup groups, or potential areas worth checking out, I'm all ears!

Thanks in advance!

Joe

[Robert Reynolds]

Hi Joe, 

You are on the right track. House Hacking is the best way to get started. You can use low money down loan programs (3% Conventional/3.5% FHA) to get into your first home and start building equity. This first home will be the foundation for the rest of your purchases. Whether you sell, hold and pull money out, it will definitely do you well. I love that you are 23 and looking to get started. I bought my first house at 23 and it helped me get into my next house which has really appreciated like crazy in this SoCal market in under 10 years. I'd love to connect and see how I can help.