Los Angeles Area Triplex - How does it make sense to buy in LA?

[Matthew R Boudia]

Hey BP Folks! 

I have started to play around with the Calculators and I don't know if I am doing something wrong, but how does it make sense to invest in the Los Angeles area? I am using a listing for a triplex in North Hollywood for this calculator posting and, based on what the Calc is showing me, the owner would not start cash flowing until around year 5 - and that is even with a 30% downpayment on the property! Am I missing something crucial to investing in a market like Los Angeles or any other coastal metro market? 

Ideally, we would want to get into a small multifamily unit, 2-4 units, and live in one of the units but I don't know how that makes sense numbers-wise for anyone. 

Thank you for your thoughts in advance! 

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*This link comes directly from our calculators, based on information input by the member who posted.