Cashflowing with 3.5% down in LA is not easy.

Originally posted by @Peter Mckernan:@Vi Lai I would say if you have the money to pay off the debt right now, do that.

LA is definitely next to really drop.

Hi @Sam Newell,LA is tough in terms of cashflow.  6% cap rate is a good deal and most listings don't make the 1% rule.

@Mark Pedroza @Ray Lai @Ryan Dossey thank you very much! 

I currently have zero debt (paid it off during covid) other than a car payment, and my living expenses are generally low for living in LA. I

LA is more liberal though than other areas, so that's just my experience.

In LA, I think even if you put a requirement of 650, most voucher holders would fall short.Believe it or not, as south LA and areas like Compton and Watts have improved, you see more and more landlords not accepting Section 8 and still getting good rents with market tenants who have well over 600 FICO and decent income - I would say over half of the rental listings I see in those areas won't accept it at this point.

As for East LA I have definitely considered that area but being that this first property would be my primary residence, LA would not be an ideal location for me at this time.

Greg, you and I are both in LA - I suspect some of what's happened here will spread to the rest of the nation (constricted rental supply, lots of competition, etc).