Want to buy and hold in Southern California/los Angeles

[Karim Karawia]

Hi, My names Karim and live in the southbay by San Pedro. I've been looking for months and am trying to make that leap to buying and holding my first multi family property. I was hoping to find something in my backyard, but am not sure where since prices are so high, it's hard to justify the income. Currently have about 20k saved up and am ready to make that jump in getting the first one started. Any suggestions as in location or minimum cash flow to be a good deal? Any advice appreciated. Best, Karim

[Brandon Turner]

Hey @Karim Karawia thanks for introducing yourself! It's great to have you here! Don't miss The BiggerPockets Podcast - they are great for learning how others are finding success.

You might like this too: http://biggerpockets.com/askbp054

Oh - and be sure to set up some Keyword Alerts- especially for "Rancho Palos Verdes" so you'll be notified when people mention it here in the forums.

Thanks again for introducing yourself!

[Brent Coombs]

@Karim Karawia, I suggest to calculate your minimum cash flow requirements:- unless it generates more cash than it costs - it's not an investment - it's gambling. (And I don't mean in 3 or 4 years when appreciation and rent increases are supposed to get you that positive cash flow; I mean now, as soon as it's rent-ready). 

Good luck fulfilling that suggested investment criteria around your area! 

Most of the current crop of "gamblers" in California HAVE been hitting some jackpots, but is it sustainable? All the best...

[Larry Fried]

@Karim Karawia Hi and welcome to BP! Have you considered investing out of the area? I live on the West Coast, and only was able to pull the trigger on my first REI deal when I committed to buying out of state where I could achieve good cash flow. So far that is the path I've continued on. All best in your REI adventures.

[Ali Boone]

You won't get positive cash flow near you, and $20k won't buy you much even with a mortgage (unless you find a property priced low enough that you can also live in a unit so you can do FHA).

$20k, on the other hand, will get you great cash-flowing properties out-of-state! (my personal preference for my own investing)

[Logan Allec]

@Karim Karawia, with $20k, I would recommend you either:

1. house hack, or
2. buy a cash-flowing SFR in more rural parts of California where you can find cash flow.

Cheers.

[Jim Keller]

Originally posted by @Karim Karawia:

Hi,

My names Karim and live in the southbay by San Pedro. I've been looking for months and am trying to make that leap to buying and holding my first multi family property. I was hoping to find something in my backyard, but am not sure where since prices are so high, it's hard to justify the income. Currently have about 20k saved up and am ready to make that jump in getting the first one started. Any suggestions as in location or minimum cash flow to be a good deal? Any advice appreciated.

Best,

Karim

A few weeks ago I put a nice home in Anaheim, Ca under contract for just $10,000 and a promise to pay $1,000 per month for a period of time as well as take over their existing loan.  This is something I have been researching and don't recommend you just do it on a whim.  It does happen everyday though, San Pedro is a market I work personally and have been on appointments to negotiate an "equity purchase" before.  I like working notice of defaults and trustee auctions, when you contact this type of client it will only be a mater of time before you find a seller with just enough equity to sell to you so you "fix" their problem.

Good Luck 

Jim

[Sterling White]

As @Larry Friedmentioned you may have to look out-state if you are seeking cash-flow due to the amount of capital you have. As you might have read through the various forums due to the rising property values in your backyard finding cash-flow positive properties can be difficult to find. 

Also welcome to the site and wish you the best of luck in your venture

[Roseann Scrivens]

@Karim Karawia how’s it going in your path-to-purchase?