First post: Just starting out

[Michael Glotfelty]

Hello BP community, My name is Mike and I am looking to begin my real estate investing career. I live in the San Fernando Valley in LA County, and I am looking to purchase my first rental property. I’m looking to invest in either an SFR, Condo, or MF within the LA and Orange Counties. Also, I am looking to finance through a bank loan, and are currently looking to see what I can afford. I’m looking to see if anyone has any suggestions on areas I should be looking into in the LA and Orange counties. Also, if there is any other advice you’d like to give for someone just starting out, it would be greatly appreciated. - Mike

[Logan Allec]

Welcome, @Michael Glotfelty

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!