Strategizing first property

[Jay Shindledecker]

Hello BP! First post here!

My wife and I have been looking at opportunities to buy our first property, with the intention of adding value over the first couple of years in the home and then transitioning it into a rental. We have been absolutely GRINDING to add to our income in the meantime so that we can save. If anyone here has read the BRRRR book, we're trying to be "Mastery Mike," but still lack the ability to structure a cash deal due to the insane LA market. We need to find properties with the combination of both personal and property distress to try to find a deal.

We want to make sure we buy a decent location/area, to maximize equity and rental growth over time. I feel like that is the non-negotiable for maximizing value in SoCal, especially if we need to live there or househack for a couple of years. However, the barrier to entry in these areas is extremely high (700k-800k in the suburbs and $1-1.2 Million in nicer areas). Most of these rents are still in the neighborhood of $3,000-$4,000, so we're really just pushing for breaking even and maximizing equity over a period of time. Even half burnt down properties are $700k+.

 We're beginning to explore Foreclosure, Pre-Foreclosure, and Off Market deals in a variety of ways. Any suggestions where members have found success here in the LA market, particularly when it comes to nicer neighborhoods.

Thanks!

[Michelle Bateman]

Have you considered doing a house hack, using FHA loan to put 3.5% down and then investing ou to state for brrrr or flips? This works good for my investors who live in high price areas such as west/east coasts. DM me if you want to chat more!