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Updated about 4 years ago,
Investing in High Dollar Areas with Lower w2 income
Hello All,
New member here and apologize if i'm touching topics that have been touched hundreds of times before.
I am gearing up for my second investment in Los Angeles and am trying to get a better idea of what i can really afford on my second go around. I have been able to save up a significant (for me) amount of cash that should suffice as 20% down in a good portion of the city and many of the areas that i am looking at. However my w2 income in the mid 100 range i am unsure if i am shopping outside of my reach.
I currently own a duplex in WLA with modest cash flow and about 450k in equity. I have since been looking at properties in multi family (or atleast ADU) properties in Highland Park, Mount Washington, Pasadena, and less so Belmont shores long beach. These would all be house hacks and i see them as a way of getting myself into an area i could not afford on my own income, as well as the opportunity to move out years down the road and cash flow.
However the areas of Carthay/Cresecent heights/miracle mile triplex/duplex properties have caught my eye and most of them are in the 1.5mm+ range. If i am able to manage a down payment is it possible to qualify for a property like this?
I have the tendency to want to go bigger/better on my next deal but am unsure if that is the right attitude as a newbie.
Thank you!