SFH Primary financing in Los Angeles

[Jason Kotzbauer]

Hi everyone, I'm a long time RE investor in SFH rentals. I've also done well flipping Primary residences. States that I've owned in are PA, WV, KY an TN.

My good friend has asked me for advice on purchasing his first primary home. He's been renting in southern CA for about 10 years now and is feeling the futility of renting vs owning. I am at a total loss. The market is INSANE. How do yall do it?

Are there any programs or products specific to the area that might help him?

He's save a good bit and has about $75k cash, and showed $350k of income last year, but mostly 1099, as he works for himself. He's in a good credit range with a limited reasonable amount of student debt. He's currently paying $5k a month in rent, but really wants to get that substantially lower. He was approved for a large conventional loan, but the numbers are staggering to me. Tiny homes that need a full reno in his area are $600k.

Thanks in advance.

[Dave Skow]

@Jason Kotzbauer- thanks -  $600 for anything  in the LA area  is a deal ....he might  look for some sort of  2 unit  so he can have a  place that he can live in as  well  as   earn some additional rental income  ...obviously a 2 plex will cost more . Its  good that he is  already pre approved  as  self employment / 1099 income can be  more challenging to get  approved than a wage earner  scenario  -  make sure he  is  formally  pre approved and not just  pre  qualified  because of this reason .   Have him ask  his lender if  there are  any  programs that  have lower rates / payments that  can afford him a  lower payment - good luck