Thank you for all of your advice, guys!! Very helpful to get all of your perspectives, I really appreciate you putting in the time to give me your opinions. I'm sorry I didn't state earlier - my budget is still being worked out since Im still learning to do the math and what I can afford in other cities. Currently, we pay about $3400 in rent per month - fortunately with our two jobs we're still able to save up a lot. My initials thoughts were to get a $600K-800K condo in the city that I could later rent out to professionals/young couples, and use the remainder for properties (type tbd at this point based on math) out of state or on the outskirts of the city. I've got in-laws in Glendora/San Dimas within CA, as well as Albaquerque, and I also go to Vegas a lot so am also researching those markets (seeing 12 units for $480K in vegas?? insane compared to the city or LA in general!!).
Individually:
@Jonas Masikat - thank you! It's definitely expensive here, isn't it? No exception in the bay area either. I'm guessing you feel there will be a correction at some point if you're still renting? I thought about turn keys, but my goal is to get my hands wet and potentially go full time, so I'm looking for something that will require some work for me. However, I've not written turnkeys off yet and I keep hearing so many great things about Memphis Invest.
@Tom Mole- yes I've definitely read a lot about househacking, it makes me wish I had gotten into it when I first graduated from college and it was a good time to buy, even in LA. The things I wish I knew! I'm going to be looking a few miles out of Century City for these multiplexes, my fiance and I currently work long hours so it does mean more to us than the average couple to stay close to the city for health/lifestyle reasons, but you are right - looking a few miles out is DEFINITELY worthwhile. My concern with some of these areas though is that the school systems don't seem to be as good (Average/Below Average) and while they may be gentrifying as prices on the westside climb, there are still bars on the windows - thinking that may hamper my ability to find good tenants as fast as I'd like, but Im still doing research. Hard to imagine plunking down $1M+ on a fourplex with those characteristics, when I look online and can get like 12 units at $480K in Vegas, where I often go? That said you are right, I need to think like an investor and get deals at smarter terms. Keeping that in mind as I do my search, thank you! Should I find a deal, I will definitely take you up on the math help and I really appreciate your offer on that. I'm good with numbers...just new to the real estate math :) and absolutely on the seller financing note.
@Brian Gibbons - thank you very much for your post. Will look into @Anthony Chara. A few questions for you:
-Curious, are prices any better in sherman oaks/studio city? I can't live that far from work, but I would absolutely consider it for my subsequent investment properties.
-And I know this question has been asked before, but is it possible to go from no real estate investing experience to even a 10 unit apartment complex? I'm assuming I'd need a good team in place which I'm also networking to find, but I've heard yes and no - I am smart with numbers, just don't want to bite off more than you think I can chew.
-Lastly, may I ask why you think SFR in my area is not good for buy/hold? I was looking at places like cheviot hills and hancock park where the houses are a bit older but the neighborhoods are nice (and still pricey, unfortunately). It seems there is an abundance of professionals with young kids who go the house route, so before I cross it off my list, if you could just elaborate a little bit I'd appreciate it.
@Matt R. - just based on total cash outflow for something in the city, it does seem like the $600K-$800K condos may be ideal but you are right. Haven't given up on SFRs that present good deals yet. How do you like investing in Sherman Oaks? As I asked Brian up above, curious to your opinion on prices in the valley. And may I ask why there are more forced appreciation opportunities for SFRs vs condos in the city - is that a general rule since it is probably easier to add extra rooms, etc? or is that LA city specific?
@Lee L. - always comforting to hear someone understands my pain! Since I work long hours and with the crazy traffic, I'm trying hard to stay in the city while minimizing my cash outlay for my primary residence, so that I can still invest elsewhere. Hence, the condo. I have absolutely no issue with the valley, where the cash flow is, I will go. Still researching other markets I have ties to, but should those not work out, I may reach out re MO. Thanks for offering, that's very kind of you :)
I have not spoken to brokers yet (located a few on CCIM for starters) or agents, but seems like the cheapest multi-families are about $1.5M at the minimum – and those are duplexes. Haven’t yet gone out and tried to “think like an investor and find a good deal”, but these multi-families I’m looking at are already in somewhat rougher, more affordable areas, so I’m skeptical if I could get any lower when a decent one (still outside the city) would be $2.5M+. That said, will put my investor hat on and see if I can get anything that makes sense. Will continue snooping around but I do appreciate ALL of your advice, it has been VERY helpful to a newbie like me. I will keep you posted :)
