In LA, House hack? Live in flip? Invest out of State?

[Andrew S.]

Newbie here. Have read a few books!

Quick Info:

-Living in Los Angeles.

-Wife and baby.

-Our family lives in Virginia.

-Renting 2 bdr. for $1750.

-Wife works full time at 60K.

-We have great credit.

-I'm currently transitioning / job hunting / learning / flexible.

-We have 100k that is liquid.

-Current cash flow is breaking even or negative each month.

-Horizon for living in LA is uncertain, but we do enjoy it.

Keeping the expensive LA market in mind, should I:

1. Buy a live in flip for tax free gains after 2 years?

2. House hack (backhouse, duplex etc)?

3. Invest out of state? (For instance in Virginia, near family).

Any thoughts / advice would be much appreciated!

[Michael T.]

@Andrew S. it truly depends on what your goals are for investing.  Do you need the cash flow right now or are you okay waiting for the appreciation?

Depending on the location in Virginia maybe you get closer to cash flow?  If you invest here in Los Angeles yes you can do a house hack and get the appreciation.

I personally live in a multi unit property here in Inglewood, own a another multi unit property in the area and buy out of state for cash flow.  I've made more money on my investments here in Los Angeles versus my out of state investments.