Strategy for First Time Buyer, 760+ Fico, $100K DP in Los Angeles

[Kevin Kim]

What's the best strategy for my first deal?

I want to invest in an income producing residential property.  I have about $100K cash saved with a steady $9500/month W-2 paycheck, 760+ FICO and no debt. I'm willing to put 5%-10% down payment and spend an additional $4000/month over any rental income the property may produce. 

I originally wanted to do an owner-occupied, low down payment purchase of a 4 unit property in Los Angeles, ranging $1M - $1.4M and hoped to get a 30yr fixed with 3.75% or lower. I couldn't find any loan products that could make this happen.

Now I'm leaning towards buying a single family home in a decent area of Orange County and use it as my primary residence. Finance with a High Balance Conventional loan, 30 year fixed 3.0%, 10% down and a target purchase price of $850K. I'll spend the first 3 months building out an ADU with my own money. I plan to sell it after 2 years to get the main home sale exclusion tax benefit where most of my appreciation will be excluded from capital gains tax.

Can anyone point me in a better direction for my first deal?  I want to stay local for my first investment.