Thanks for the lengthy replies. I'll try to address both of your questions....So I have already done a refi on my house and am max'd at $417. I am currently using those funds to do work on the new house which is just up the road in Pasadena off Ave 64 (San Rafael hills). A little on the new house...it was my Grandfather's, went into a family trust after his death and now my Dad owns it. I will purchase it in about 5-6 months at a bit below market and will be able to retain my Grandfather's original tax rate. I love Highland Park but my house is very small (less than 1000 SQFT). I feel moving into the Pasadena house is a no brainer. I also feel HP will continue to increase in value over the next few years, but who the hell really knows. I do however think owning in Los Angeles overall is very positive. One thing also...my current HP house has a small back house (no plumbing currently) that I could do a small addition to and probably rent it out for close to $1000 to a student or someone looking for a day use office.
So yes, after all expenses I will still have positive for cash flow. The rents in my area are astronomically high and my location is ideal. Right near all that's popin' on York Blvd.
I am very eager to start creating passive income ASAP. My goal is to be able to quit my day job in the future and continue to broaden my rental portfolio.
My current plan is to mostly purchase "turn key" properties that will all be under property management. It would be very hard for me to hunt down properties, rehab them, find tenants etc. I am also interested in wholesaling and buy and flip as well.
So as it stands I plan to hold my HP house indefinitely as a rental and continue to look for more properties elsewhere. I will also have instant equity in the new house once I move in.
really appreciate your replies!
~Andrew
