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James Wilder
  • Winnetka, CA
0
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CA Real Estate Market... Should I wait

James Wilder
  • Winnetka, CA
Posted
Hello all! My name is James and I'm in my mid twenties living in the greater Los Angeles area. I'm new to bigger pockets but i have finally saved up some money I am interested in house hacking a duplex. I plan to do this using a FHA loan; however I am having some difficulty in determining the timing of when I should do this. As many if you know the real estate market in LA is very expensive (anything in a decent area is around $1M). Going off of the principle that what goes up must come down I believe it to be inevitable for house to level out (even in CA). I am wondering if you (the bigger pockets community) believe it to be wise to wait for prices to come down in an extremely expensive market. Thank you in advance!

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70
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Shayne Fee
  • Investor
  • Huntington Beach, CA
38
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70
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Shayne Fee
  • Investor
  • Huntington Beach, CA
Replied

@James Wilder

I have done exactly what you are thinking about doing a few times in the last few years. 

If you buy now you need to find a deal under market with value add opportunity. IF you can do that then the positives of buying now outweigh the potential negatives. 

Know that worst case scenario you will have to stay in that duplex and make those payments if you are not able to improve it and refi, sell, or rent for acceptable cash flow. 

Good luck and feel free to reach out if you have any questions!

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