New Member in LA Looking for 1st Investment / House Hack

[Sam Shapiro-Kline]

Hi All,

I'm new to real estate investing, based on the westside of Los Angeles. Part of my motivation is seeing the impact of housing scarcity and affordability in California.

Currently exploring 'lower cost' entry points into development - specifically opportunities to buy SFH or 2-4 unit MF and add 1 or more ADUs, in LA county.

Anyone have experience with ADU additions as an investment strategy?

I'm also open to moving and house hacking component depending on the location in Los Angeles. I'd consider medium-income areas of LA like East Hollywood, Koreatown.

Reach out!

[Charles Renn]

Quote from @Sam Shapiro-Kline:

Hi All,

I'm new to real estate investing, based on the westside of Los Angeles. Part of my motivation is seeing the impact of housing scarcity and affordability in California.

Currently exploring 'lower cost' entry points into development - specifically opportunities to buy SFH or 2-4 unit MF and add 1 or more ADUs, in LA county.

Anyone have experience with ADU additions as an investment strategy?

I'm also open to moving and house hacking component depending on the location in Los Angeles. I'd consider medium-income areas of LA like East Hollywood, Koreatown.

Reach out!

 Hi @Sam Shapiro-Kline, welcome to BP! Jonathan makes more than a few great points. From my experience with my clients, there is less hassle finding properties like 2-4 unit properties, then finding a SFR and converting a garage to an ADU. Like Jonathan mentioned the costs can get pretty high, especially if you don't have a trusted contractor. He also mentioned he bought a triplex and converted a garage to an ADU. I recommend getting a clearer picture on how this works for financing. My understanding is that a multi-unit property with an ADU is non-conforming, which means when it comes time to refinance or sell the property, you might run into some issues with appraisal, with current finance regulations. This said, people do it, and if you're holding long term and not planning to take out equity, you may not run into any issues. Hope this helps!