NEW investor in California

[Vianey Monica galdamez]

Hello everyone, I started buying real state  about 5 years ago and I have never called my self an investor but thats what I want to be. We have 3 properties  that we are renting out plus our private property. Now we are thinking on buying another one but we are having a hard time finding something in La Crescenta California. Everyone is offering more than what the house is worth and if I do that I would not make any money. 

Any advised on how to get houses in that area? that actually gives me some cashflow? 

most houses in this area are 900k,  

the down payment is ridicules but we want to buy houses in areas with great schools. 

I feel stuck. 

[Jason Kudo]

@Vianey Monica galdamez

I really don’t understand why people keep saying don’t invest in CA. This is terrible advice to be giving in general. Every investor is different with different goals, expectations, budgets, etc and you can cash flow in CA. It takes a little more work and possibly a little more up front investment but there is a ton of money being made by investors in CA right now. Is it more expensive than Alabama? Of course. But CA and AL are different, aren’t they? Yes.

Your best bet right now is to find a single-family with ADU or a duplex with larger bed/bath counts. Also, putting down 3.5% or 5% won't get you very far in most situations since the profit will be eaten by the mortgage insurance. Although, I have a client who recently purchased a 3/1 with an attached single in Long Beach and they put 5% down and are cash flowing since both units have been rented.

If you can't find a single-family with an ADU, consider buying a single-family that gives the option to convert a garage into an ADU or build a new ADU from the ground up.