Should I FHA 203k & househack in palmdale/lancaster in this current market?

7 Replies

beginner here who wants to buy first property on live in flip holding for 2yr (tax benefits). 

Then duplex out and begin to rent other side and or both moving on. Does anyone work in or around the Palmdale / lancaster CA markets and what are some of the drawbacks of these 150k  3000/Sq ft. CA homes that are only 2 hrs away from water front?

i feel like this might be an easier market to begin in as CA prime real estate is Scarce. 

any comments help.. thx BP members

Lancaster/Palmdale has areas that could offer you a good return for rentals - keep in mind that the area has a different lifestyle of living -  more of a family/commuter town than a hip/cool place to live.

West Lancaster (west of the 14) is great for families but wont offer you the cool returns east lancaster will.  And there's far east lancaster (further east than 60th east)  that has pockets that are viewed as less desirable/secluded territories  (close to Lake Los Angeles)

 To each his own of course,  just do your research before you lock yourself in for two years.  'live where you like to live,  invest where it makes sense' 

 A 3000 sq ft rental is huge,  most pros I know shoot for rentals between 1000 and 1600 sq ft,  easier to maintain and less people and things to manage. 

I would rather get en entry level duplex in LA. You can find these under $450K in decent areas. It will cost you under $20K to get it. Super easy to rent out, better appreciation and low maintenance.

exactly the input i was looking for and actually starting to discover @zaid. 

thx 

good point in the other direction @ewa just always felt like the deals would be too far and few in between. maybe looking for poor management can be my way in to the LA market off MLS ?

Ewa makes a great point - 

There are quite a few duplexes on the market.

I use two websites to look at houses/listings in Lancaster: Redfin and AVrealestate.com 

The other thing would be that i do need to occupy this property myself in some way because of the (FHA first time buyer rate/ 203k). So currently living in Torrance/ redondo beach, which is the atmosphere i love. Im not very interested in living in a duplex in B / C / D neighborhood in the heart of LA. Is that what im faced with Ewa Reza ? Or do you know of a more desirable area ? I get the idea of "jungles neighborhood" or lower end at 450k duplex.

@Christopher Abernathy Have you thought of a 4 plex? FHA 203k is available for up to 4 units. That way you can offset your vacancy rate a little better, by losing only 1/4 of your rent while vacant. Of course it depends on how much you have for a down payment, and how comfortable you are living so close to your tenants.

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