2-4 Unit House Hack in South Bay-Los Angeles

[Josh Wallace]

Does anyone have any success stories of purchasing a cash flowing 2-4 unit property in Los Angeles? More specifically, in the South Bay. I know that this area is more traditionally a buy for appreciation market or so I have read and have been told. I am able to use the VA home loan benefit and I work close to LAX so I want to find a 2-4 unit where I would be close enough to bike to work and under $800K.

I'm not writing this looking for a deal but rather seeing if anyone has done this before. Not necessarily this same exact plan but has anyone on here been able to buy a 2-4 unit in this area (south of I-105 and west of I-405)? My thinking here is to have the other units cover the majority if not all of the mortgage to where I can live well below the market rent in the area. During the years of living there myself, I want to save up money and build equity to where I can start purchasing properties out of state that have better CAP rates and cash flow margins. Am I crazy to think I can purchase a cash flowing 2-4 unit in this region (being mindful of taxes and other costs that are relatively high in this region) or would it be best to use what savings I have now to purchase a turn key out of state that is already cash flowing while I continue to rent? As a renter I am facing market rents and potential annual increases to rent.