Quote from @Danielle Tran:
Hello Bigger Pockets Community,
I would really love to get the advice from those who understand the Orange County, California market. I am just starting out and would love to invest in a property here in Orange County, CA. I have saved up enough to qualify for a condo/townhouse. I would love to invest in a single family home or multifamily property however I am unable to afford that at this time in this location. Since this will be my first property, I would prefer not to ask family or friends for help financially. I would start off with either house hacking or use an FHA/conventional loan where I live in it for one year and then rent it out after. I know it has been mentioned many times to not invest in a property that has an HOA however if I purchased a condo/townhouse, all of them comes with HOAs. I found a townhouse that has an HOA half the amount as all the other townhouses around the area. I am debating if I should jump on this opportunity to finally get started in investing in real estate or wait and save money for a single family home without an HOA. I keep hearing in my head "Time in the market is better than timing the market." I also don't want to become "house poor" if I choose to invest in a single family home. Would love to hear your opinions. Thanks!
Hi Danielle!
These are all great concerns. California is one of the most expensive places to invest in and yes, it can be very hard to make money. I think you're on the right path, trying to avoid HOA's to save yourself money. My recommendation would be to find an agent who is well-versed in investments. They can help guide you much more than a forum. But since we are here, I will throw in my two cents. I'd recommend trying to find a duplex or a single-family home with an ADU (additional dwelling unit) to start off with. This will give you the opportunity to purchase a primary residence, with a lower down payment, and also make money on rental income. If you're able to move a little bit further away to live in your investment, you can find yourself a great deal! It is a good time for buyers right now to negotiate. As we get closer to spring and summer, the competition will get higher. But don't let that pressure you into a bad deal. Make sure you have someone who can run numbers for you to make you confident you're making the right choice.
If you have any more questions, feel free to reach out! Happy hunting!
