House Hacking in California

2 Replies

Hey everyone, I'm 23 years old and looking to get into real estate investing as soon as possible. I'm currently studying Economics at UCLA, and will be graduating in 2018. I would like to be in a position to begin REI at most a year after graduation (after graduating I plan to have a solid W-2 job which will help with financing). I have a small amount of savings (about 10k) which I'm currently working on building up. Ideally, I would like to begin house hacking because paying my current 1700 a month in rent is really hurting my ability to save and focus on building wealth. I know California's market isn't the easiest to house hack in, but if anyone has had any success or has any advice I'd love to hear it. I will most likely be working in the LA area upon graduation, so I'm hoping to find a place that is within commuting distance.

On a side note, I inherited 42.5% of a single family 3 bed 3 bath home in Santa Clarita that my sister and I are currently renting out. Just thought I'd throw this in here and see if anyone had any general advice!

Thanks in advance!

Hey Vanessa, thanks for the response! So regarding the 3+3, my info is very limited. When my mom passed, the house went into a trust. My uncle was the executor, however he passed and my sister became the executor. At the time, I wasn't interested in real estate (nor mature enough to gain interest in it) so my sister dealt with everything regarding the house. Fast forward about 3 years, and studying/learning anything real estate related has become a passion. Unfortunately my sister doesn't have much info regarding the financial aspects of the house. She has agreed to meet with me in the next couple weeks so I can help her sort through everything and figure out all the numbers, so I should know more soon.

So to answer your question...I think we are cashflowing, but very minimally. Sorry for the life story, but I wanted to explain why my answer to your question is so vague. Once I get all the numbers I'll have a better answer.

I've actually been strongly considering focusing on out of state investing and would love to pick your brain. A buddy of mine actually just bought his first out of state property out in Waco. Have you decided whether to go with an LLC or umbrella policy? I know California is tricky when it comes to LLC's and out of state investment properties.