PLEASE HELP: Buying First Home

[Diana Camacho]

Hi there, I am planning on buying my first home. I live in SoCal and although the interest rates are very low the market here is very competitive. Everything is selling quickly and for a higher price than listed. I would love to get into real estate investing but I am not too sure how to approach it considering the high cost of loving here. 

The areas I am looking for to buy will put me at a 1 hr. commute from work (the closer to LA, the more expensive everything gets).  I am thinking of buying a condo, I can't afford a home without the need of major renovations or having a 1:30+ hrs commute when I go back to work on-site. I know condos are harder to sell and they don't typically give you the best return for your money but it seems like the best option at the moment. 

I plan on buying a condo, living there for a few years, sell or rent, and then buy a home and hopefully an investment property. How should I determine what are the best cities to buy this first property in? I am considering areas in decent cities but there are also nicer/cheaper areas getting farther away that would add 30 min to my commute. How can I determine if enduring a longer commute it's worth it? A lot of the areas closer to LA have been gentrified and the prices have gone up a lot but the cities are still not the nicest. Not sure how to determine if the closer cities I am considering will follow the same pattern. 

I have a good credit score (750+) and I have ~$30K for downpayment and closing costs. What steps and considerations would you all recommend? Is this a good approach or would you suggest I consider something else?

Thanks!

[Charles Cooper]

@Diana Camacho

Congrats on setting your goal to buy a property. My advice is to stay away from buying a condo if possible. I understand it may be the best option based on price, but it doesnt have the advantages of a SFR or even a duplex. Have you considered a duplex where you can rent out the other unit and that would help with qualifying for the higher payment?

The issues I have with condos are that with the price you pay for HOA, you can use that money towards your principal of your payment. Also, when you want to sell, the price will be based on other units in the complex. Its harder to househack as well since some HOAs are strict on what you can do even inside the property.

If the condo is the only option, then thats fine since you are at least purchasing instead of renting. Good luck!