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Updated over 5 years ago,
LA/OC/IE SFR strategies seem to be very limited
Hi Everyone,
Just wondering what people are doing with SFR property here in the hot spots. Los Angeles and Orange Counties, and the IE West of the 15 freeway. I'm targeting off market vacant homes in the established areas, first one was in Garden Grove that I was actually able to get close to 70% ARV that I wholesaled off to a flipper. I'm currently working on one in the IE west of the 15 freeway which I want to try something on my own. I feel like I have sufficient funds @100k and a network of private money lenders ready but since nothing can cash flow around these areas, is the only strategy flipping? I'm more attracted to rental property for cash flow.
I might move my growing family in to this next one and just work on paying down a conventional loan until it can cash flow in to a rental prop but that is going to take time. I'm trying to work out the numbers but it seems like without a substantial down payment, cash flow is impossible thus eliminating any type of rental/brrrr strategy. I'd be happy if it can break even and I just sit on the appreciation since these are in highly desirable areas but would like to hear if people are doing things differently?
I understand cash flow properties are better found outside of CA and I will be digging in to those in the future, even possibly outside of the country in expat communities (one of my partners is a digital nomad that lives abroad is familiar with areas in Thailand, Colombia, Indonesia etc). My sources will only help me dig up off market vacants in the hot spots so that's why my finds will always be in these established areas, but again, looks like I would be stuck with wholesaling them off or doing the flip myself?