Buying Small Homes on Small Lots as LTR - Thoughts?

[Rick Albert]

Hello All,

I'm considering buying a small home on a small lot in LA. Here are my thoughts:

1. Buy at a discount given the lack of building potential and can always pass that discount along when I sell.

2. There is still a high demand for SFRs.

3. Tenants may not care as much, therefore there may not be a big discount for the lack of space. 

I'm curious if anyone else has gone down this path and what their experience has been.

Thanks!