House Hacking in Southern California

[Hector Bastida]

Hey BP folks after much research, books and countless hours listening to the BiggerPockets Podcast.... I have decided that it's time to take some action.  My goal is to house hack and buy a multi-plex closer to work since my commute is sucking the life out of me.  For over 3 1/2 years I've been commuting from West Covina to Marina Del Rey.  About 35 long LA miles.  Each way.  Every day.  

I've talked to a mortgage broker about getting an FHA loan for a duplex and based on my income and info (I have no debt of any kind and I pay no rent since I live with family) I'll most likely only qualify for a $600K mortgage. That includes factoring in the income I would be receiving from the 2nd unit. $600K isn't much for a multi-plex here in Los Angeles and even if I do get a duplex I'll most likely be stretched pretty close to my debt to income ratio.

I've come to find that multi-plexes are very expensive here in SoCal and very difficult to purchase coming in with an FHA loan (too much competition from cash investors). I've also learned that cash flowing in SoCal also difficult.

Would this still be a good way to enter the RE market here in LA?  I won't be cash flowing but at least I'll have a tenant helping me pay down the mortgage.  And if I'm Iucky, I can force a little appreciation and be in a better position a few years down the road.

I'd love to hear what y'all think.  Many many thanks!

Newbie,
Hector