New Member in Los Angeles - Looking for advice and to learn

[Wesley Brown]

Hi Everyone, 

I am excited to join the site and delve in. 

I work in non-profit finance and currently rent with my spouse. I feel like I'm totally priced out of the L.A. market and currently rent two miles from work and bike most days. I am considering purchasing an investment property home in Bakersfield to at least build up some equity with someone else's money while I have to rent. 

I'm not sure if this is the best idea or if it would disqualify me from an FHA loan for myself in the future. I also don't see how I could ever afford a duplex etc. that everyone seems to be talking about at the prices they go for here and considering my current, meager nest egg.

Looking to learn and appreciative of any and all advice. 

Thanks!

[Ciprian L.]

@Wesley Brown I suggest to talk to a lender and see how big of a mortgage you qualify for. Ask them to give you loan scenarios for 2-4 units also. Then talk to a realtor to send you the listing for 2-4 units in the area that you would like to purchase. If you cannot afford anything, you can buy investments properties in other areas and still use the FHA loan later.

I started investing out of state and purchased a duplex with FHA loan a few years later. I was under the impression that I cannot afford anything local and the only option for cash flow was out of state when I started investing. Now my cash flow on the duplex is better than the cash flow from out of state properties.

My advice is to make sure that you cannot afford anything local before you invest out of your area.

Good luck!