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.

[Will F.]

Start making tons of offers in your area and see for yourself is probably the best answer anyone on a forum will give you

In redondo beach you're probably priced out

It could happen in Long Beach, Inglewood Hawthorne, Lomita, Harborcity though depends on the area you're able to live in and how long.  So many variable s good luck bro

I have success stories and plenty will have them who bought in 2010-2014 or who bought major fixers recently and value-added.  Or people who bought in the nineties or eighties there's plenty of house hacking stories... depends on if you can handle the grind and willing to take the risk. In the long run 5-20 years it's hard to make a mistake in RE, unless you don't do your due dilligence initially or really don't know your stuff. 

That all being said in the short run it will probably be a ton of work, it will take $$$, time, or stress to make it work--most likely a combination of the three.  

If you're willing to it can work.  good luck either way