All Forum Posts by: Joan Pla

@Account Closed yeah, not San Francisco for me :) I love the city but prices there, you know well they are non-sense!! :)

@Amit M. Thank you very much for sharing your thoughts, and of course, thanks to everybody's response here, it's pretty clear to me what's the best way to go. :)

@Andrew Neal you are totally right. :) 

@Andrew Neal thanks, we are definitely looking to get an FHA loan though we've already been pre-approved for a 5% down loan, which would be our second best option.

@Arlen Chou thanks for your reply. I don't know anything about prop 13, so I'll go and educate myself on that regard. Aside from that, you pointing out the advantages makes it much easier to have a better picture. Really much appreciated.

@Marvin Lara I've been looking in Inglewood, around the new stadium but mostly avoiding the west side of it. Also the Valley (Van Nuys, Encino, North Hollywood) and East LA by Montecito Heights and around.

Never been to any REI meetings, I probably shoot, where is it happening and what time? I'd love to go and meet some peers.

@Marvin Lara thanks man. Yeah it seems that this year will become a buyer's market and my goal is to buy towards end of the year. Would you recommend any good RE agent or even wholesaler? Feel free to PM me :)

I take note on getting rejected LOL

@Dan Smith thanks for your response Dan, you have a very valid point. If I end up buying OOS, I don't plan on managing the property myself but hiring a property manager and I agree that cash flow in LA is difficult because of the rent control. I've found a few fourplexes that are selling for apparently a good price but then you see what the rents are and it stops making sense. Some of these properties had rents even below half the market prices!! I'll PM you to keep the conversation going.

My wife and I's goal is to buy our first property towards the end of this year when we think we will have enough for a down payment.  But our dilemma is whether to buy in LA or outside of California. 

The same amount of money is enough for a 5% down in Los Angeles or 20% on more affordable markets. In LA we'd be buying a non-renovated SF (with granny's flat) where we'd move to and rent the granny's flat to help pay the mortgage.  Adding up what we pay now for rent + income from the guest house, we'd still have to add another $1000-$1500 to pay all expenses. Now, in the case of buying a triplex or fourplex in a cheaper market, we are thinking a turnkey property and saw some options that would give us about $450-$600/month positive cashflow.

On paper, it seems the smart option is to buy outside of state and get that cash flow going but there's one important thing, we live in a 1 bedroom apt with a 21-month old girl, which means maybe we have 1 more year at our current place and we'll definitely have to move to a 2-bd place and rent will increase by $500-$1000. at least, so then, there's not so much difference anymore.

I'd love to know your thoughts.

Thank you in advance!

@Adrian Kar , fellow Angeleno here :) We are on the same page, I haven't invested either but one constant that I noticed from experienced investors, books, podcasts, etc.. would be this: 

1 - Find a lender in the area you want to buy  and ask if they have any recos for agents.

2 - Find an agent that can send you leads  and ask if they have any recos for property managers

3 - Find Property manager and ask if they have any recos for contractors.

The only way I can think of buying in LA is with an FHA loan and moving in but don't expect positive cash flow in many of the properties since rent control keeps many rents way below market rent. Just my two cents.

I was doing some research and read somewhere that taxes in Chattanooga are 2.277%, is this accurate? Seems awfully high, especially if the average tax rate of the state is half of the national average.