Los Angeles - Trying to get Started

[Alberto Izarraraz]

Hi Everyone,

I've been reading a lot about investing here and it has been great. The part that is difficult is my location.

My current issues are these. I only have $13k saved up and I live in a very expensive market, Los Angeles. In other places, you could just go into a worst neighborhood and find something but here that's not much of a possibility.

Now, here is what I perceive to by my options:

1. House Hack - Get an FHA that allows 3-5% down, find a condo in $300k range (most likely only 2 bedrooms) and rent out a room. This seems to be taking into a lot of debt and I might be paying about $1000+ myself a month after renting out a room. I currently pay significantly less.

2. Look really outside the market. I'm considering the Phoenix area. Save up a bit more money and do the 6 hour drive to Phoenix whenever I need to be more hands on in managing. I'm sure there are insurance, property management fees and I'm still trying to figure if it is worth it. But property is between $80 to $120k.

Is there a better option I am missing?

Also, getting through Millionaire Real Estate Investor. Is there a good second book that people recommend for a beginner especially in my case?

Thank you in advance,

Alberto

[Nicole C.]

Hey hey we are in the LA market and your money is good here.

• if you buy a condo the hoa fees will eat you alive and you will not make profits

•You have enough money to perhaps put up front costs on a flip and use a private or hard money lender. If you find a good deal in the outskirts of LA say sb county or Lancaster

•Team up with another investor if you would like to stay and flip in LA county

•Use the money to create a wholesale business and make more money

•Buy a note.