House Hacking In LA & Orange County, 1st Time Home Owner

House Hacking In LA & Orange County, 1st Time Home Owner

Orlando, FL · Member since 2015 · 3 posts · 2 votes

Hi all!

I'm looking for any and all advice I can get on preparing, searching for, and finding my first property. I'm hoping to find a successful house hack somewhere in the Los Angeles and Orange County areas with my commute being to Anaheim. I'm likely going to need to finance with a FHA and a family member co-signer/borrower.

I know this is a very difficult and very hot market and based on preliminary research a duplex likely won't cut it but triplex and 4-plexes may be unaffordable when it comes to even a 3.5% downpayment and PMI fees. I don't necessarily expect to cover my mortgage but want to supplement my cost of living while building equity.

I'm extremely new to this and realize I may realistically still be a couple years out from pulling the trigger but I want to be making meaningful steps towards what I need to do to be ready. Any tips on learning the market, local laws, and another advice is greatly appreciated! Thank you!

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Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
8y
Liam Sterbinsky Search Self-sufficiency rule, and do your research. I don’t see any issues where you couldn’t do a househack in orange, start with what you can afford, a duplex, show cash flow and experience, a couple years, swap to 4-plex.
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  • Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
    8y
    Liam Sterbinsky Search Self-sufficiency rule, and do your research. I don’t see any issues where you couldn’t do a househack in orange, start with what you can afford, a duplex, show cash flow and experience, a couple years, swap to 4-plex.
  • Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes
    8y

    Hello @Liam Sterbinsky. I know very little when it comes to Orange, but the principles I talk about in my 10 step guide apply to anywhere. Hope you'll find it helpful. 

  • Long Beach, CA · Member since 2016 · 24 posts · 8 votes
    8y

    @Liam Sterbinsky, I second @Manolo D. on the self-sufficiency rule. If your goal is to acquire residential real estate with a low downpayment loan, FHA might not be the best product. FHA requires the "self-sufficiency" rule for 3/4 unit properties NOT for duplex. Its near impossible to find a deal in LA/OC that meets the rule, it is possible a bit farther out though (Riverside, San Bernardino, etc.). So, if you are set on a 3/4 unit property I would recommend the home possible loan. It requires 5% down and has some income limitations, but does NOT have a self sufficiency rule. 

    Feel free to reach out if I can help with anything. Fight on!

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