cerebral palsy and real estate investing in LA

[Jason Malabute]

I need some advise please:

So I have $200k to put down. I am pre approved for a $580k duplex, $640k triplex, or a $700k fourplex. My mom is a co-borrower (I would not get approved without her). The condition of the loan is that the property has to be owner occupied. In 2018, I will be receiving a large chunk of capital ($400-500k) that I will be investing in real estate also.

Here is the dilemma, since LA and it is a "seller market" I am having a hard time getting my offers taken seriously because it is so low. I offer way lower than asking price because that. is the only way I will cash flow with 3% vacancy, 25% repairs, 5% Capex, and 10% property management fee on top of the fixed expenses.

I am a CPA who HAS CEREBRAL PALSY AND I DO NOT DRIVE. THEREFORE, I CANNOT LOOK FOR PROPERTIES AN HOUR OUTSIDE OF LA BECAUSE I WOULDNT BE ABLE TO GET TO MY JOB THAT IS IN LA. It is also not that easy to quit your job and move when you have Cerebral Palsy.

I have to move out soon(by July or August) I dont want to waste my capital on renting. I also don't want my preapproval to expire.

I was thinking would it be a good idea if I just buy a duplex in LA that I can live in for a long time (for more than a year) even if it does not cash flow? As long I am house hacking and having the second unit pay my mortgage.

I will then use the capital that I will receive in 2018 to buy a property or properties outside of LA where it actually cash flows and has a decent ROI while still living (house hacking) in duplex that I buy in property that I buy in 2017. I could also use some equity from my first property by then.

I just want to get my foot in the door

Is this a good idea to change my strategy or should I keep offering low in LA market?

Thank you,

jm