Buying a Condo to later turn into a rental property

[Anthony Holloway]

Hi,

I’m currently renting in Los Angeles and I hate having to pay rent because I feel like I’m throwing money out the window. But with the salary that I make and the area I want to live in, I can only afford to buy a 1-2 bedroom condo. I’m looking to stay in the Valley; Burbank, Glendale or Pasadena area. My thought process is to buy a 1-2 bedroom condo in one of these areas and live in it till I’m able to refinance on it and put the refinance amount and anything else I have to add to buy a single family house. I would keep the 1-2 bedroom condo and convert it to a rental property. I will then use this strategy again on the single family house and continue to grow my portfolio. What are your thoughts on this?

[Anthony Holloway]

@Clarence Johnson thank you for giving your thoughts on my post! I'll talk to my lender about the options to do a duplex, I thought if I wanted to do a duplex my salary would need to be a lot higher. I was looking for single family homes with a garage space to convert into an ADU but I could not find a house in the areas I was looking in. I did find new community homes that are being built but they have an HOA. I wasn't sure if buying a house in one of those new communities is worth to try to make it into a rental or turn the garage space into an ADU. Any thoughts on that?