House hacking in South Pasadena , CA

[Aram Hamidi]

My husband and I are looking for to buy our first property, and we are looking for a multifamily in South Pasadena, CA. Most of the buildings aren't in good shape and the prices are crazy high. I was wondering if anyone has been able to find a good deal in this area, and if you know a good agent who is familiar with this strategy to introduce us.

[Nabil Suleiman]

@Aram Hamidi

I buy and hold in South Pasadena. If you are looking for cash flow, its not going to happen there without a lot of upfront capital. The "Crazy high" is because of the reasons you want to live there. The school system is part of it yes, but also the proximity to Downtown, the small community etc etc. 

Your best opportunity to get in and get close to a cash neutral or cash flow property there is to find something you can renovate and add a 1200 sq ft ADU to in the back. I almost bought one two weeks ago, and the price for the home was 970k built in 1932. That can maybe help you paint the picture for what costs are there. South Pasadena is also not developer friendly, and their city planning department is terrible, so just be aware of what you are getting yourself into before you choose to move forward.

If you care about schools and budget I would look at La Crescenta as an alternative.