Inherited property in LA, seeking advice from experienced investors

[Michael Adamo]

Hello all,

As a single father, I am reaching out to the community for some advice on a property that my sister and I recently inherited in Los Angeles, in the 90036 zip code. The lot is 6500sqft, with a 3 bed 2 bath 2000 sqft house built in 1925. It's currently zoned R1-R3 and has a rear detached garage with two exits, one from the driveway and one from a connected 15' alley. It's not in an HPOZ neighborhood but is very close to a new Subway station development. The house has been taken down to the studs and completely remodeled in 2000, including new plumbing and electrical. However, it was recently inspected and the foundation has issues and the roof is in good condition but showing signs of wear and tear. The house itself is charming but could use a repaint. The value is $2,000,000. I checkrd the local market and called a few property management companies, they mentioned that i could rent it out for about $6000 a month. Current Property taxes are $3000 a year. 

My goals and obligations are complex and expensive. I need to provide housing for multiple people, including my disabled family in the San Fernando Valley, and a place for myself to live. I would prefer not to live with family unless it was in a multi-unit building where I could occupy one unit. I need a minimum of 2 bedrooms and would like to stay local. However, I also need a 2 bedroom space in the Phoenix area where my children are living with my ex, and I need a place to spend time with them while I am out there. I am willing to temporarily leave Los Angeles for them, but would also like to live back home.

My goal is to utilize this property to supply housing and create generational wealth for myself and my family. I am self-employed and currently eligible for an FHA loan for around 400k and don't mind house hacking. It's not much in California, but I'm thinking it could be useful for a property in Arizona.

I am interested in hearing strategies and ways to utilize this year's interest rates and strategies going into 2023, as well as what people are doing in Los Angeles and Phoenix with the current market. I am also interested in hearing about other safe cities to invest in other than California and Arizona.

As a shark, I know the value of a good investment, and I am confident that this property has the potential to be a great one. I am open to all suggestions and am willing to put in the work to make this a successful venture.

Thank you in advance for your help and advice.

Best,

Mike