First Investment - Los Angeles

[Bruce Banner]

Hey all,

I’m relatively young (30), and in the fortunate position of having the capital to afford a $1M - $1.5M mortgage. 

I live and work in LA, and I’d love to know: for those familiar with the market, what would you do in my position? Stated another way, what do you wish you had done at my age (in this market)?

Based on some very cursory research (Zillow) it looks like I could afford a decent duplex (and maybe a triplex) on the east side (Silver Lake, Echo Park, Atwater, etc.). The same is true for a nice SFH (2/2). Options are more sparse and worse on the west side (Venice, Santa Monica, etc.).

My general understanding is that I’d be doing so mostly for appreciation — cap rates are going to be very low in this market. I’m fine with that, and I like the idea of getting a home now, living there, subsidizing it to some extent (via either a tenant or roommate), and then moving out/renting fully in 5ish years when I need more room.

I’m just beginning my real estate journey, and I’d really appreciate some quick takes. Generally, I like the idea of getting an asset now and paying into it vs rent, but I also know this market is nuts + LA is a tough market. Maybe I should just invest my money elsewhere. 

Thanks!