All Forum Posts by: Jason J.

Thanks for all the responses guys. Lots of great information here for me to think about.

I think my main problem is that I want to live in DTLA for the short-term, and rent it out in the long-term. Based on the discussion here however, it would be much better to find an MFR in a nearby city and rent that out... but then my problem is that I have no interest in living in that. Mixing up my long-term and short-term goals kind of sounds like I was trying to "have my cake and eat it too" :) I guess I shouldn't have expected that to be very likely...

I think I'll try to start looking for better value-buys in neighboring cities for my long-term interests, and then find a cheaper place to rent from for the short-term. Hopefully it's somewhere/near 90017 - still kinda bummed that I will most likely have to continue to pay "empty" rent for the next few years...

@Trevor Ewen Thanks for the honest and thorough response. From an investment perspective, it seems like most of the properties I'm looking at don't make sense. Here's a couple of my thoughts:

a) I am a bit confused about the 1% statement you made. The $1700 is what I am paying for at my current apartment, but I don't own it. Shouldn't I be assessing the mortgage on the place I'm looking for, rather than my current "dead rent" spot? 

b) Even if I apply the 1% rule at places I'm looking at, the numbers don't look great. If you had a second, I was curious on your thoughts about the properties on this Trulia map: http://www.trulia.com/for_sale/90017_zip/map_v ?

c) Lastly, if all of the places on the above map look pretty bad (from an investment perspective), do you have any advice on how to find motivated sellers / hidden gems in the area?

Thanks in advance for your advice.

I'm definitely a newbie at real estate ownership / investing, but I'm in a situation that I hope some better experts can analyze for me. I apologize in advance for the beginner-speak :)

Here's my situation:

I'm trying to buy a 1-bedroom apartment in downtown Los Angeles, particularly in the 90017 zip code (Here is a better diagram of location: http://bit.ly/1urYTX0 - the closer to 7th/Figueroa the better). 

However, I'm worried about the market being "too hot" or prices being too high - I have money for the downpayment and can comfortably pay rent, but I don't want to buy something at the wrong time and then have the place plummet in price.

My budget for a 1-bedroom apartment is 250-400k, and I want to live in it for 5-10 years, and then rent it out for a reasonable price (or at least one that covers mortgage/HOA fees) after I move. I love the area and I want to live in it for the short-term, but definitely don't want to raise a family in downtown 5-10 years from now. I'm 27 years old.

Are there any experts that might have any advice for me? What would you do in my situation? Is it possible to find a deal like this in the area, or am I "too late" to the party? What might I be missing? 

I TRULY appreciate any advice - I'm trying to create a plan of action to make ownership a reality, and I really don't like paying 1700/mo for "empty" rent right now. I'm trying to buy a place with Renting in mind down the line. My only requirement is that I stay within that zip code.

Edit: I can also slightly "increase" my budget for a bigger place (2-bedroom, etc) if that makes more sense from a renting perspective (+/- 150k)

I'm looking to buy a place in downtown Los Angeles, and I've read some stuff on first-time home-ownership, but I'm definitely still a newbie :)

DTLA is a bit more expensive area, but money is not a huge issue for me (I just don't want to get ripped off, or buy something that suddenly plummets in price). I'm a bit frustrated that I pay 2k a month right now on rent, when I could be using that money to be putting into equity in a nice condo/apartment. However, I don't want to rush into buying something if the market is too hot or I can't get a good/decent deal.

What advice would you recommend for a newbie first-time buyer on how to find a properly-priced apartment in a relatively high-demand, metropolitan area? I imagine this process is going to take 6-12 months minimum, so I'm just trying to start the research process.

(This would not be an investment for the short-term - it's a place that I want to live in. However, I definitely don't want to raise a family in DTLA, so maybe 5-10 years down the line I could see myself renting it out. I'm 26 y/o right now, and plan on staying in DTLA for about 5-10 more years).