Buying a Downtown Long Beach Condo

[Mark Wood]

Hello, 

Newbie here. I have been very interested in Long beach real estate after going to multiple REIA meetings in my area of Torrance. Ideally I'd like to get a multifamily unit, live in one and rent out the other units. The problem is that I can't afford any that me and my fiancee would actually live in.

We've looked into condos in downtown Long Beach and are excited about all of the construction going on 

https://la.curbed.com/maps/long-beach-development-...

So we've turned our search into condos in downtown Long beach.  

I've talked to a couple of lenders and my purchase price budget would be max $700k and I'm able to put 10% down.  There's two types of condos in our price range.  Older units in the 300-400k range located west of Pacific and newer units in the 500-700k range.  

My question:  From a purely real estate investment standpoint, is it better to buy something in the lower range that may have a bigger return on investment?

2 bed 2 bath 2 parking spaces with in unit washer dryer located a bock west of pacific $320,000 HOA $220/month https://www.zillow.com/homes/for_sale/2090937594_z...

2 bed 2 bath 2 parking space in unit washer and dryer with a gym in the complex located a block or two away from where they are going to build a brand new trader joe's $595,000 HOA $486

https://www.zillow.com/homes/for_sale/111919528_zp...

Feel free to ask questions, blast me, make fun of me all criticism is welcomed so I can learn.

Cheers!

[Amy J. Tsang]

505 Cedar has had some great comps sell in the building this year, but be grateful you didn't purchase in 300 E 4th! The HOA is currently in litigation and it's really affected the resale value of those units. As for the multi-unit that you're currently in contract on, how many units is it and would you and your fiance be living in one of them? If so, I'd look at the -$583 per month as really cheap rent for you two while having others pay down the bulk of your mortgage. Also, when you ran the numbers did you consider all the tax deductions if it's going to be your primary residence?