All Forum Posts by: Ewa Reza

@Isaac Wang

Hey Isaac, welcome to the real estate hustle! I love seeing college students diving in early!

I’m a Realtor/investor in LA and used to specialize in house hacking myself, so I know how powerful (and tricky!) this strategy can be around here. You’ve got the right mindset, but I’ll be honest: pulling off a house hack in LA with an $800K budget is definitely ambitious, especially if you’re aiming for cash flow.

A few thoughts to help you out:

1. FHA Financing – Solid idea if you're going for a single-family or maybe a duplex. But for 3–4 units, FHA gets complicated fast because of the self-sufficiency test. In LA, it's almost impossible to find a 3–4 unit that passes that test, especially in areas you'd actually want to live in. If I were you, I'd look into conventional financing with 5% down for 3–4 units (yes, it exists - most people don't realize that's an option).
2. Working with the Right Team – 100% yes to getting both a loan officer and a Realtor on your side. But not just any - you need people who actually understand house hacking. A good agent will connect you with a lender who knows how to structure these kinds of deals (there’s definitely an art to it).
3. Neighborhoods & Existing Tenants – You don’t need to target “rough” areas, but you do need to be realistic. With your budget, you might have to compromise a bit on location or condition - or shift expectations. And be careful with tenant-occupied properties. In LA, tenant protections are no joke, and you can’t just ask people to leave.

With $800K, your most likely path is a small single-family home and renting out rooms. It won’t be cheaper than renting an apartment, but think of it as planting the seed for future wealth. You’ll likely be cash flow negative at first, but 5 years from now? You’re selling or refinancing with equity under your belt - that’s the long game.

If you can stretch your budget closer to $1.2M, I actually have a listing in Mt. Washington/Eagle Rock — 3 units bringing in around $7400/month fully rented (one can be delivered vacant). It’s practically built for house hacking, and in a great location for young professionals or students.

Feel free to message me if you want to dive deeper or just want a sanity check as you navigate all this. It’s a wild ride, but totally worth it.

I love your creative thinking @Stephanie Luciano haha but I'm afraid they won't buy it. One way to obtain that kind of financing would be to get a job offer in San Diego. Offer letter that proves that you or your husband needs to relocate, would be a valid reason to get that 5% down loan.

Turn key 10 key boutique hotel in Lake Arrowhead CA  - not yet on the market; asking $3M DM me for more details. 

Looking for like minded individuals / investors looking to break into real estate development - hospitality as well as high end spec homes. Please private message me if interested in equity partnership.

@Bonnie Low Let me show you some actual numbers...

 I have mostly 4 bedrooms that are NOT furnished and utilities are responsibility of a tenant. LTR rental Zestimate is $3K. I usually rent them at a bit of a premium around $3200 and ALE gets me usually $3800. And they have to rent furniture which is probably another $1500/month for this size home (basic package on 6 month rent). So roughly with these numbers if you have furnished place you can make 75-80% more with MTR (compared to LTR). I believe this is rather on par with other MTR landlords but honestly I don't know many people who deal with MTR.

@Henry Clark could you elaborate on this? I'm trying to find out more about SBA lending for hotel construction....

I've been contemplating teak plantations in Belize for a while now. Especially combined with STR or boutique hotel. How did you get started?

I work with ALE pretty consistently in Sacramento area and also Glendale CA. The difference in rates in LTR vs MTR in Sacramento aren't significant. I get maybe $600 a month more with MTR. It comes unfurnished and even fridge and washer / dryer ALE needs to rent elsewhere. They don't care if utilities are included. In fact I believe they would rather utilities NOT be included because if not included already in rent it costs them less. Tenant / their client pays utilities and security deposit. They only pay accommodation and furniture rental. 

Los Angeles is a great place to house hack actually. There's many places that it's easier to do, as cash flow in LA in very tough to get I'd say for the first 2-3 years of ownership but the appreciation is the best. Why cash flow a few hundred bucks a month when your property can appreciate tens or hundreds of thousands a year? Currently I recommend to my clients getting a single family house with ADU and short term rent the main house. A small 2 bedroom house in the right location can bring in $10K+ in revenue each month.

@Jon Latorre I'm traveling to CR next week. What areas do you recommend for airbnb in particular? 2 or 3 bedroom properties would be more profitable considering their cost? If your company were to manage the STR in CR how do you deal with matter of safety / home burglaries?