All Forum Posts by: Rory Kinnear

The neighborhood is tough as it has resisted gentrification for some time. The University location might imply solid rental demand, but with such a huge amount of student housing, that demand (I have heard) doesn't actually leak out into the neighborhood like you would expect. That said, with the expo line, proximity to downtown and freeways, plus the coming Inglewood Stadium, and later olympics, leads me to think that an ARV of 650k is not unreasonable, but I would expect it to be a better hold than flip.

Thank you @Clarence Johnson, grateful for you chiming in on behalf of FHA, 50% would also put me nearly 1/3 of my net-worth in a single asset which has its problems too.

Thanks @Jim S., I am very grateful for your input. Since my goal is to give myself greater financial freedom here by owner-occupying, and my career is 100% LA dependent (for the next 10 years or so) I am just going to have to deal with what are the very real challenges in Southern California. Becoming an absentee RE investor would not satisfy those goals, but in fact add so much additional pressure that it would distract from the work that is my top priority. Given that I am able to put up ~50% down, I think the LTV should not be as difficult for me as others.

 Tremendously appreciative of your post, that is very much a coherent strategy.

As for LA I'm running into the issue that at 3k/month income the only way to get a 500k loan is FHA which is considerably more expensive per month (but I'm still meeting with lenders to determine options). In addition the math typically leaves me with more than 50% of my net worthy exposed in a single real estate venture, which may be less than advisable in the current market.

Hi folks, I've been researching how to get started with REI (house-hacking/duplex, or SFR with roommates), and am wondering what sort of strategies people use when starting off with lower income but high starting capital (inheritance). I see TONS of advice for the reverse situation. It seems conventional Freddie/Fannie loans are capped based on income severely limiting my financing and in Los Angeles I'm finding I would need to put over 50% down (which I can, just uncomfortable being so un-diversified). The FHA loans can get me much more financing but have such higher costs and really add up making that an unattractive option.

Thoughts? Strategies? Is it worth the FHA costs to be able to secure more financing, or just load up personal capital on my first property?

 With all due respect, this seems completely incorrect. Without a track record of investment income (this will be my first property), no lender I've spoken too from will consider future income from the property when calculating how much they will lend right now, they have both said they can only look at the income I currently have. So as I said, I'm looking for advice on neighborhoods with properties under 600k. At the risk of being rude you're advice about getting 2-4 units is just plain unhelpful and misleading.

Thanks so much @Ciprian My reasoning for SFR was purely financial, I didn't see a likelihood of finding 2-4 units for under 600k without going an hour or so out from my preferred areas. As for financing, I'm putting over 50% down as I'm cash rich but income poor and cannot get much financing beyond 200k.

Hi folks, I've been reading and researching here for the better part of the year and would be very appreciative of any input on this question. I'm finally looking to purchase my first SFR, which I will live/rent to offset costs and save up for any rehabbing, it's exciting but daunting.

I've only just started looking around where I rent right now, near North Hollywood and other parts of the SFV and have found some within my budget for sure, but am wondering what particular neighborhoods with reasonable commutes to Hollywood do people recommend with a budget of 600k (for 2-3bdrm SFR)? Are there agents in these areas that anyone can refer?

thanks in advance, happy to answer any further questions or chat with anyone in the area as well.