All Forum Posts by: Hector Bastida

@Daniel Travis I'm planning to buy and hold.  Ideally I'd live in the plex for a year maybe longer before renting out the space I was occupying.  In that time, hoping to save up more cash for a down payment on another property.

I haven't thought about the what the units would rent.  I'm not there in my analysis just yet.  I'm still trying to search for the best areas that are close to work that would make sense.  But you make a good point about whether or not it would cash flow once I moved out.  Thanks!

Hector

Hey BP folks after much research, books and countless hours listening to the BiggerPockets Podcast.... I have decided that it's time to take some action.  My goal is to house hack and buy a multi-plex closer to work since my commute is sucking the life out of me.  For over 3 1/2 years I've been commuting from West Covina to Marina Del Rey.  About 35 long LA miles.  Each way.  Every day.  

I've talked to a mortgage broker about getting an FHA loan for a duplex and based on my income and info (I have no debt of any kind and I pay no rent since I live with family) I'll most likely only qualify for a $600K mortgage. That includes factoring in the income I would be receiving from the 2nd unit. $600K isn't much for a multi-plex here in Los Angeles and even if I do get a duplex I'll most likely be stretched pretty close to my debt to income ratio.

I've come to find that multi-plexes are very expensive here in SoCal and very difficult to purchase coming in with an FHA loan (too much competition from cash investors). I've also learned that cash flowing in SoCal also difficult.

Would this still be a good way to enter the RE market here in LA?  I won't be cash flowing but at least I'll have a tenant helping me pay down the mortgage.  And if I'm Iucky, I can force a little appreciation and be in a better position a few years down the road.

I'd love to hear what y'all think.  Many many thanks!

Newbie,
Hector

Hello BP Family! I've been listening to the BiggerPockets Podcast for several months now, taking notes, researching, reading books, trying to educate myself about the REI world. I'm extremely passionate to get my journey to financial freedom started and the one thing I keep hearing over and over.... is to take action. So here I am.

My name is Hector, I live in Los Angeles and work in advertising as a budget manager. I'm 39 y/o, no kids, no debt, live rent free with family and have a nice but not large savings account ready to invest. I don't have any prior RE experience but after the research I've done, I've decided to focus on multi-family properties and potentially house hacking my way into REI.

I'm already taking steps by getting pre-qualified and working with a real estate agent. Although from what I'm hearing, Los Angeles is super competitive on multi-family properties. My agent advised that most of the plexes are bought by seasoned investors with cash in hand so getting one to accept a loan offer will be extremely difficult. My agent advises I look for a SFR and use that as an investment property instead of going the multi-family route. Any advice on strategies to use here in Los Angeles?

Thank you for reading this and I'm looking forward to interacting, meeting and networking with this wonderful family!

@Lucas Allmon how was your experience with the FHA lenders in Los Angeles? I'm also interesting in going this route here in LA. Any tips for which lenders to go with? thanks!