Los Angeles Creative Investing

[Zane Petty]

Hey everyone. I am very new to real estate investing. I started reading and following forums this year and have no properties currently. I am looking to buy my first single family fixer upper in Los Angeles. My goal is to buy a property that has room for an ADU or a garage that can be converted into an ADU. For the needs of me and my wife we would live in the main house and not in the ADU. I know this would mean not cash flowing but my main goal is getting out of the place we live in now without spending $5,000 a month on rent. The average house price here is about $650,000 so I will need to get creative with financing and finding deals. I've done driving for deals and work with a client that is a whole seller. Even when something comes across my desk that the numbers work I don't have the capital for a down, rehab costs and reserves.

My question is what would be your advice on creative financing. Would a private lender be interested in going in together and let me manage the rehab and the tenets in the ADU? Can I refinance this and buy them out after rehab and appraisal? Do I need to hold until we sell then use that money to find the next deal?

I'll have about 20-30K to invest early next year (selling a car) so I do have some capital of my own to add to the pot. Any advice would be greatly appreciated! I really want to get into investing but am a little limited by a high market and not being able to move too far due to work. Out of state investing would be fine with me after this first property. 

Let me know if this is even feasible or if I am crazy chasing this!