House Hacking in Greater Los Angeles under 500k

[Pedro Cardoso]

Hi everyone! I recently moved to LA and I am looking for a property under 500k to house hack. I have already read past posts on this topic, but would be great to get refreshed views. What areas you recommend looking into that are not super sketchy?

For greater context, I work in downtown LA and I am prepared for a longer commute (ideally up to 1hr). Also I plan to do a 20% down payment (otherwise MI will kill my cash flow). Ideally, I am looking for a multi-family, but I understand that is difficult at this price point, so I am also looking at SFH. I am aware that LA is difficult to cash flow but I would like to get as close as possible. Any ideas would be greatly appreciated!

Best,

Pedro Cardoso

[Jon Schwartz]

Originally posted by @Pedro Cardoso:

Hi everyone! I recently moved to LA and I am looking for a property under 500k to house hack. I have already read past posts on this topic, but would be great to get refreshed views. What areas you recommend looking into that are not super sketchy?

For greater context, I work in downtown LA and I am prepared for a longer commute (ideally up to 1hr). Also I plan to do a 20% down payment (otherwise MI will kill my cash flow). Ideally, I am looking for a multi-family, but I understand that is difficult at this price point, so I am also looking at SFH. I am aware that LA is difficult to cash flow but I would like to get as close as possible. Any ideas would be greatly appreciated!

Best,

Pedro Cardoso

 Pedro,

Believe it or not, I think you can find what you're looking for.

You'll want to look south of downtown LA, from the 10 down to the 105. The closer you get to the 105, the sketchier the neighborhoods will become, so a lot depends on your tolerance for where you live.

You'll also want to look to the northeast, specifically Boyle Heights, City Terrace, and East LA. Fortunately for you, a lot of inexpensive, up-and-coming neighborhoods are in close proximity to downtown LA.

Also, on the finances, it's important to approach an LA househack with the right expectations. LA househacks don't cashflow. I only know of one househacker in LA who cashflows, and it's because he built an ADU. But househacks are still totally worthwhile in LA!

The cost of living here is soooo high and makes up a huge portion of your monthly expenses. So if you can cut that down by $1000/month, it's like making an extra $1000/month. If your gut is saying, "No, man, no way," lemme know, and I'll write a longer spiel about this.

Where in LA are you living now?

Best,

Jon