Investing In Los Angeles

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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
9mo
Quote from @Adriana Cuenca:

Hello everyone!

I would like to use the method House Hacking for my first real estate investing, is that even possible in Los Angeles? I checked Redfin but everything looks very expensive.

And thoughts or ideas? Thank you!


 It is a tough RE market. Interest rates are near the highest for this century. Property prices per 2 recent studies are at an all time high versus rent (the studies were comparing the cost of home ownership to renting and both studies concluded that in virtually every large US city it is on average cheaper to rent than to own).

In virtually all markets the days of purchasing a rent ready property at retail off the MLS is not going to save the house hacker money in the initial years. It likely is not going to beat other investment options available.

It is my view there are only a few paths in RE in the LA market (and most other RE markets) at this moment 1) patience. I am thinking years of patience. LA has historically out performed virtually all other markets. Over the long term I believe this will continue. However, other markets have the same challenges contrary to the posts from OOS agents. I am not that patient. 2) value adds. For the most part these require work and have risk but there are few markets that do better than LA via value adds. My last purchase is up over $1m above my costs in 3.5 years. 3) alternate rent models (rent by room, STR, MTR). These require work. Pay an PM and the profit is significantly reduced 4) alternative below market financing such as assumable, owner finance, wraps, sub to, etc 5) path of progress. Buy in areas that appreciation will far exceed the general market. It there a large major infrastructure development somewhere? In my market they recently completed a multi billion dollar Chula Vista bay front redevelopment. Already approved but early in the process are a large enhancement of a secondary airport (brown field) and the midway rising development which includes a new arena, retail, and residential development (pending law suits, etc). With such large and costly development, these areas seem likely to out appreciate the general local RE market.

realize if you purchase rent ready off the mls with market financing, you likely will need to hold near a decade for it to likely save enough versus renting to justify the effort.  Patience is very likely to be awarded.  As indicated, I am not that patient.  I always use one of the other items I mentioned.

Good luck

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  • Lender · Chicago, IL · Member since 2025 · 204 posts · 101 votes
    9mo

    Adriana! Yes, house hacking is possible in Los Angeles, but it looks very different than in lower-cost markets, so your instincts are right. From what I’ve seen working with my real estate investors in California, the people who succeed with house hacking in LA approach it strategically rather than traditionally.

    Most successful house hackers focus on small multifamily properties like duplexes, triplexes, or fourplexes, or single-family homes with existing ADUs or permitted potential. Buyers typically live in one unit and rent out the others, even if the property does not fully cash flow right away. In a market like LA, the primary goal is usually to significantly reduce your housing cost rather than eliminate it completely in year one.

    From a mortgage financing standpoint, this works because owner-occupied loan programs allow lower down payments and more flexible terms. FHA financing can be used for 2 to 4 unit properties with a low down payment as long as you live in one unit, and conventional loans also offer low down payment options for owner-occupied properties. In many cases, a portion of the projected rental income from the other units or ADU can be used to help you qualify for the mortgage, which improves buying power in a higher-priced market.

    What I also see often in California is buyers focusing on transitional or overlooked areas of LA County where pricing is more realistic, while still benefiting from strong rental demand and long-term appreciation. Understanding zoning, ADU regulations, and how rental income is treated by lenders is critical before going under contract.

    The biggest key is running the numbers conservatively and structuring the financing correctly from the start. You’re asking the right questions early, which is exactly how successful house hackers in LA get started.

    • Member since 2026 · 9 posts · 6 votes
      9mo
      Quote from @Ebonie Beaco:

      Adriana! Yes, house hacking is possible in Los Angeles, but it looks very different than in lower-cost markets, so your instincts are right. From what I’ve seen working with my real estate investors in California, the people who succeed with house hacking in LA approach it strategically rather than traditionally.

      Most successful house hackers focus on small multifamily properties like duplexes, triplexes, or fourplexes, or single-family homes with existing ADUs or permitted potential. Buyers typically live in one unit and rent out the others, even if the property does not fully cash flow right away. In a market like LA, the primary goal is usually to significantly reduce your housing cost rather than eliminate it completely in year one.

      From a mortgage financing standpoint, this works because owner-occupied loan programs allow lower down payments and more flexible terms. FHA financing can be used for 2 to 4 unit properties with a low down payment as long as you live in one unit, and conventional loans also offer low down payment options for owner-occupied properties. In many cases, a portion of the projected rental income from the other units or ADU can be used to help you qualify for the mortgage, which improves buying power in a higher-priced market.

      What I also see often in California is buyers focusing on transitional or overlooked areas of LA County where pricing is more realistic, while still benefiting from strong rental demand and long-term appreciation. Understanding zoning, ADU regulations, and how rental income is treated by lenders is critical before going under contract.

      The biggest key is running the numbers conservatively and structuring the financing correctly from the start. You’re asking the right questions early, which is exactly how successful house hackers in LA get started.


      Hi Ebonie,

      Thank you so much for taking the time to write such a detailed and thoughtful response — I truly appreciate it. This was incredibly helpful and reassuring to read.

      I really appreciate how you explained what house hacking looks like specifically in a market like Los Angeles. Your points about small multifamily properties, ADUs, and focusing on reducing housing costs rather than expecting full cash flow right away gave me a much more realistic perspective.

      The insight you shared about owner-occupied financing, FHA options, and how rental income can help with qualification was especially valuable. I can see how understanding zoning, ADU regulations, and conservative underwriting is critical before moving forward.

      Thank you again for sharing your experience and knowledge. I’m still early in my journey, but conversations like this motivate me to keep learning and asking the right questions.

      Have a wonderful weekend!

  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    9mo
    Quote from @Adriana Cuenca:

    Hello everyone!

    I would like to use the method House Hacking for my first real estate investing, is that even possible in Los Angeles? I checked Redfin but everything looks very expensive.

    And thoughts or ideas? Thank you!


     It is a tough RE market. Interest rates are near the highest for this century. Property prices per 2 recent studies are at an all time high versus rent (the studies were comparing the cost of home ownership to renting and both studies concluded that in virtually every large US city it is on average cheaper to rent than to own).

    In virtually all markets the days of purchasing a rent ready property at retail off the MLS is not going to save the house hacker money in the initial years. It likely is not going to beat other investment options available.

    It is my view there are only a few paths in RE in the LA market (and most other RE markets) at this moment 1) patience. I am thinking years of patience. LA has historically out performed virtually all other markets. Over the long term I believe this will continue. However, other markets have the same challenges contrary to the posts from OOS agents. I am not that patient. 2) value adds. For the most part these require work and have risk but there are few markets that do better than LA via value adds. My last purchase is up over $1m above my costs in 3.5 years. 3) alternate rent models (rent by room, STR, MTR). These require work. Pay an PM and the profit is significantly reduced 4) alternative below market financing such as assumable, owner finance, wraps, sub to, etc 5) path of progress. Buy in areas that appreciation will far exceed the general market. It there a large major infrastructure development somewhere? In my market they recently completed a multi billion dollar Chula Vista bay front redevelopment. Already approved but early in the process are a large enhancement of a secondary airport (brown field) and the midway rising development which includes a new arena, retail, and residential development (pending law suits, etc). With such large and costly development, these areas seem likely to out appreciate the general local RE market.

    realize if you purchase rent ready off the mls with market financing, you likely will need to hold near a decade for it to likely save enough versus renting to justify the effort.  Patience is very likely to be awarded.  As indicated, I am not that patient.  I always use one of the other items I mentioned.

    Good luck

    • Member since 2026 · 9 posts · 6 votes
      9mo
      Quote from @Dan H.:
      Quote from @Adriana Cuenca:

      Hello everyone!

      I would like to use the method House Hacking for my first real estate investing, is that even possible in Los Angeles? I checked Redfin but everything looks very expensive.

      And thoughts or ideas? Thank you!


       It is a tough RE market. Interest rates are near the highest for this century. Property prices per 2 recent studies are at an all time high versus rent (the studies were comparing the cost of home ownership to renting and both studies concluded that in virtually every large US city it is on average cheaper to rent than to own).

      In virtually all markets the days of purchasing a rent ready property at retail off the MLS is not going to save the house hacker money in the initial years. It likely is not going to beat other investment options available.

      It is my view there are only a few paths in RE in the LA market (and most other RE markets) at this moment 1) patience. I am thinking years of patience. LA has historically out performed virtually all other markets. Over the long term I believe this will continue. However, other markets have the same challenges contrary to the posts from OOS agents. I am not that patient. 2) value adds. For the most part these require work and have risk but there are few markets that do better than LA via value adds. My last purchase is up over $1m above my costs in 3.5 years. 3) alternate rent models (rent by room, STR, MTR). These require work. Pay an PM and the profit is significantly reduced 4) alternative below market financing such as assumable, owner finance, wraps, sub to, etc 5) path of progress. Buy in areas that appreciation will far exceed the general market. It there a large major infrastructure development somewhere? In my market they recently completed a multi billion dollar Chula Vista bay front redevelopment. Already approved but early in the process are a large enhancement of a secondary airport (brown field) and the midway rising development which includes a new arena, retail, and residential development (pending law suits, etc). With such large and costly development, these areas seem likely to out appreciate the general local RE market.

      realize if you purchase rent ready off the mls with market financing, you likely will need to hold near a decade for it to likely save enough versus renting to justify the effort.  Patience is very likely to be awarded.  As indicated, I am not that patient.  I always use one of the other items I mentioned.

      Good luck


       Hello Dan,

      Thank you so much for the information, like I told Ebonie, I appreciate you sharing your experience and knowledge. I’m still early in my journey, but conversations like this motivate me to keep learning. 

      Have a nice day!

  • Los Angeles, CA · Member since 2026 · 24 posts · 7 votes
    9mo

    Hi Adriana, great post and thanks for sharing.

    I'm a realtor and an active investor/developer in Los Angeles and I would echo a lot of what has been said already. 

    I think it really depends on your goals for the property. Getting the traditional cashflow investing models to work in prime Los Angeles markets is very difficult - ie. if you're putting down the minimum downpayment, borrowing the rest and trying to rent it at market value. The reality is that the sale prices are mostly just too high to make that work.

    However for long term appreciation, from an equity/asset value perspective, Los Angeles is near impossible to beat in the US, in my opinion. The value of your equity over the long term is likely to be substantially higher from a property in Los Angeles than most other markets in the US, so you can definitely make great investments hear with either a) a larger downpayment/smaller mortgage, and/or b) living in one unit, and renting out others.

    I've personally previewed several fantastic house hacking opportunities literally within the last couple of weeks in different areas of Los Angeles, so there's great options out there. It really just depends what your goal and strategy is. 

    Happy to chat more about this any time.

  • Realtor · Los Angeles, CA · Member since 2016 · 100 posts · 38 votes
    8mo

    Hi Adriana, 

    House hacking is definitely possible in LA. I myself have house hacked in LA to get myself into the housing market in LA. 

    I'll DM you if you would like to discuss this further. 

    Vinay

  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    8mo

    @Adriana Cuenca

    Even with Los Angeles housing being so pricey you can still make house hacking work but you will need to be clever about it. You gotta look for places that are getting ready to boom. That is where you will find duplexes and triplexes that would not break the bank unlike Inglewood South LA and Long Beach which are already pricey. With an ADU property owners can make extra money from rent without having to buy big apartment buildings.

    Good luck!

  • Juan YepesBusiness Member
    Lender · Miami, FL · Member since 2025 · 127 posts · 36 votes
    8mo

    Hi Adriana,

    House hacking is possible and one of the best ways to enter expensive markets like California. It gives allows you to access very little down payment loans and helps accelerate your debt pay down when you have tenants paying you rent.

    Without house hacking, if you have limited funds, you might need to look at of state where prices are lower and a 15-25% down payment is still feasible. This would not help you create wealth as fast so I would say take advantage of house hacking in your city if you’re up for it.

    Helm Mortgage Corp - Juan Yepes, Director5126 Reviews
  • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    8mo

    I'm a 2x house hacker here in Los Angeles and a case study in the BP book, The House Hacking Strategy. It is 100% doable depending on your goals.

    You make money 4 different ways in real estate:

    1. Cash Flow

    2. Appreciation

    3. Loan Buy Down

    4. Tax Benefits

    You may not be cash flowing, but you are making it up with the other three. Imagine buying a property for $1,000,000 putting $50K down including closing costs. Appreciation is 5%ish depending on the source and in one year you just made that money back. 

    Where people get hung up is on the cash flow without doing or factoring in the other calculations. I've used my past house hacks as leverage to buy more rentals. Most of my house hacking clients do the same. That's where Los Angeles really shines and why so many successful investors start here. 

    • Dan H.Pro Member
      Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
      8mo
      Quote from @Rick Albert:

      I'm a 2x house hacker here in Los Angeles and a case study in the BP book, The House Hacking Strategy. It is 100% doable depending on your goals.

      You make money 4 different ways in real estate:

      1. Cash Flow

      2. Appreciation

      3. Loan Buy Down

      4. Tax Benefits

      You may not be cash flowing, but you are making it up with the other three. Imagine buying a property for $1,000,000 putting $50K down including closing costs. Appreciation is 5%ish depending on the source and in one year you just made that money back. 

      Where people get hung up is on the cash flow without doing or factoring in the other calculations. I've used my past house hacks as leverage to buy more rentals. Most of my house hacking clients do the same. That's where Los Angeles really shines and why so many successful investors start here. 

      In general I agree with your sentiment, but …

      rent to value is at an all time low per 2 recent studies, the interest rate is near the high point for this century, and Los Angeles can be very landlord unfriendly.

      the high interest on high LTV loan (you are proposing at least 95% LTV) combined with poor rent to value can easily have a two unit negative $25k/year or more with accurate sustained underwriting.

      the 5% historical appreciation, without looking it up, seems fairly accurate for Los Angeles in general but it is not a straight slope.   We are coming off a decade plus of incredible appreciation.   For 2 years I have done my underwriting with 5 years at 0% appreciation and then 4% (my market (San Diego) is near 6% for this century but I do not expect this going forward).

      then there is the issue of raising rents to close the gap on that negative cash flow.   Ab1482 is not very restrictive in rent increases, but the various local jurisdiction rules can be crazy.   Los Angeles in particular has had numerous rent increase moratoriums.   This implies closing that negative cash flow can be more difficult than in a “free” market.

      the tax advantages typically have less value to newbies in HCOL markets.   Those with decent income cannot ordinarily write off passive losses against active earnings.   If the property is cash negative (almost a certainty if purchased off the mls with high LTV market financing), the property has no passive income to write off the depreciation or interest.  The losses are banked for future years.   They could easily be banked until exit.  I suspect most RE investors in Los Angeles when they start are getting no tax benefit in the initial years.

      the current RE market has more challenges than virtually all other times. This certainly is not to imply that RE cannot do well. Patience will eventually be rewarded. Value adds, alternative financing, below value purchase, alternate rent models, etc. can produce good ROI. Best combine a few of them.

      cash flow: negative and Los Angeles has challenges to close the gap
      appreciation: varies but I suspect low in the near term
      tax benefits: likely zero
      equity pay down:  about 1% of value at 95% LTV.   This ends up being significant on high LTV loans.


       if your comment was before 2022, I would agree.   In this market, I think with a decent length hold your comment is likely accurate but the initial years will likely be challenging.  

      I do agree house hacking is a better option to enter the RE market for most people than most other options, but it is not without challenges. 

      Best wishes

    • Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
      8mo
      Quote from @Dan H.:
      Quote from @Rick Albert:

      I'm a 2x house hacker here in Los Angeles and a case study in the BP book, The House Hacking Strategy. It is 100% doable depending on your goals.

      You make money 4 different ways in real estate:

      1. Cash Flow

      2. Appreciation

      3. Loan Buy Down

      4. Tax Benefits

      You may not be cash flowing, but you are making it up with the other three. Imagine buying a property for $1,000,000 putting $50K down including closing costs. Appreciation is 5%ish depending on the source and in one year you just made that money back. 

      Where people get hung up is on the cash flow without doing or factoring in the other calculations. I've used my past house hacks as leverage to buy more rentals. Most of my house hacking clients do the same. That's where Los Angeles really shines and why so many successful investors start here. 

      In general I agree with your sentiment, but …

      rent to value is at an all time low per 2 recent studies, the interest rate is near the high point for this century, and Los Angeles can be very landlord unfriendly.

      the high interest on high LTV loan (you are proposing at least 95% LTV) combined with poor rent to value can easily have a two unit negative $25k/year or more with accurate sustained underwriting.

      the 5% historical appreciation, without looking it up, seems fairly accurate for Los Angeles in general but it is not a straight slope.   We are coming off a decade plus of incredible appreciation.   For 2 years I have done my underwriting with 5 years at 0% appreciation and then 4% (my market (San Diego) is near 6% for this century but I do not expect this going forward).

      then there is the issue of raising rents to close the gap on that negative cash flow.   Ab1482 is not very restrictive in rent increases, but the various local jurisdiction rules can be crazy.   Los Angeles in particular has had numerous rent increase moratoriums.   This implies closing that negative cash flow can be more difficult than in a “free” market.

      the tax advantages typically have less value to newbies in HCOL markets.   Those with decent income cannot ordinarily write off passive losses against active earnings.   If the property is cash negative (almost a certainty if purchased off the mls with high LTV market financing), the property has no passive income to write off the depreciation or interest.  The losses are banked for future years.   They could easily be banked until exit.  I suspect most RE investors in Los Angeles when they start are getting no tax benefit in the initial years.

      the current RE market has more challenges than virtually all other times.   This certainly is not to imply that RE cannot do well.   Patience will eventually be rewarded.   Value adds, alternative financing, below value purchase, alternate rent models, etc. can produce good ROI.  Best combine a few of them.

      cash flow: negative and Los Angeles has challenges to close the gap
      appreciation: varies but I suspect low in the near term
      tax benefits: likely zero
      equity pay down:  about 1% at 95% LTV


       if your comment was before 2022, I would agree.   In this market, I think with a decent length hold your comment is likely accurate but the initial years will likely be challenging.  

      I do agree house hacking is a better option to enter the RE market for most people than most other options, but it is not without challenges. 

      Best wishes


       One thing I have always liked about you here in the forums is that you are balanced. I appreciate that.

      I do agree, that not everything is as it seems. I think the perspective of house hacking is even with what you are saying, an argument can be made that it is still better than renting and even with it's challenges, might dollar wise outperform other states. For example you rent a room out for $1,000 a month here is still higher than renting out a house in Birmingham for $900/month and you still might have to put the same amount of money down (20%  in LCOL versus 5% in HCOL).

      I think that no matter what someone does, they can make it work with the right information. People do well in Los Angeles, people do well in San Diego, and people do well out of state. I still firmly believe that house hacking is one of the best ways to get started in HCOL areas because it doesn't have to be forever. I just moved and this is the first time in the 10 years of investing that I don't have a tenant living somewhere on the property. I actually have a garage!

    • Dan H.Pro Member
      Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
      8mo
      Quote from @Rick Albert:
      Quote from @Dan H.:
      Quote from @Rick Albert:

      I'm a 2x house hacker here in Los Angeles and a case study in the BP book, The House Hacking Strategy. It is 100% doable depending on your goals.

      You make money 4 different ways in real estate:

      1. Cash Flow

      2. Appreciation

      3. Loan Buy Down

      4. Tax Benefits

      You may not be cash flowing, but you are making it up with the other three. Imagine buying a property for $1,000,000 putting $50K down including closing costs. Appreciation is 5%ish depending on the source and in one year you just made that money back. 

      Where people get hung up is on the cash flow without doing or factoring in the other calculations. I've used my past house hacks as leverage to buy more rentals. Most of my house hacking clients do the same. That's where Los Angeles really shines and why so many successful investors start here. 

      In general I agree with your sentiment, but …

      rent to value is at an all time low per 2 recent studies, the interest rate is near the high point for this century, and Los Angeles can be very landlord unfriendly.

      the high interest on high LTV loan (you are proposing at least 95% LTV) combined with poor rent to value can easily have a two unit negative $25k/year or more with accurate sustained underwriting.

      the 5% historical appreciation, without looking it up, seems fairly accurate for Los Angeles in general but it is not a straight slope.   We are coming off a decade plus of incredible appreciation.   For 2 years I have done my underwriting with 5 years at 0% appreciation and then 4% (my market (San Diego) is near 6% for this century but I do not expect this going forward).

      then there is the issue of raising rents to close the gap on that negative cash flow.   Ab1482 is not very restrictive in rent increases, but the various local jurisdiction rules can be crazy.   Los Angeles in particular has had numerous rent increase moratoriums.   This implies closing that negative cash flow can be more difficult than in a “free” market.

      the tax advantages typically have less value to newbies in HCOL markets.   Those with decent income cannot ordinarily write off passive losses against active earnings.   If the property is cash negative (almost a certainty if purchased off the mls with high LTV market financing), the property has no passive income to write off the depreciation or interest.  The losses are banked for future years.   They could easily be banked until exit.  I suspect most RE investors in Los Angeles when they start are getting no tax benefit in the initial years.

      the current RE market has more challenges than virtually all other times.   This certainly is not to imply that RE cannot do well.   Patience will eventually be rewarded.   Value adds, alternative financing, below value purchase, alternate rent models, etc. can produce good ROI.  Best combine a few of them.

      cash flow: negative and Los Angeles has challenges to close the gap
      appreciation: varies but I suspect low in the near term
      tax benefits: likely zero
      equity pay down:  about 1% at 95% LTV


       if your comment was before 2022, I would agree.   In this market, I think with a decent length hold your comment is likely accurate but the initial years will likely be challenging.  

      I do agree house hacking is a better option to enter the RE market for most people than most other options, but it is not without challenges. 

      Best wishes


       One thing I have always liked about you here in the forums is that you are balanced. I appreciate that.

      I do agree, that not everything is as it seems. I think the perspective of house hacking is even with what you are saying, an argument can be made that it is still better than renting and even with it's challenges, might dollar wise outperform other states. For example you rent a room out for $1,000 a month here is still higher than renting out a house in Birmingham for $900/month and you still might have to put the same amount of money down (20%  in LCOL versus 5% in HCOL).

      I think that no matter what someone does, they can make it work with the right information. People do well in Los Angeles, people do well in San Diego, and people do well out of state. I still firmly believe that house hacking is one of the best ways to get started in HCOL areas because it doesn't have to be forever. I just moved and this is the first time in the 10 years of investing that I don't have a tenant living somewhere on the property. I actually have a garage!

      I am seeing more posts and encountering more people at RE meet ups that are not doing well in coastal southern Ca. I saw 3 threads in the last few days (one was Bay Area, but that is similar market to coastal So Cal). I suspect in the years since I started on BP to a couple years ago, I may not have seen 3 struggling CA RE investor posts in a year, certainly not in the span of a few days. One was in San Diego, condo down 10% in value and HOA up significantly. Purchased a few years ago at a rate virtually same as today's rate. Never saw that prior to a couple years ago because I started on BP after the GFC and no area in my market has a decline over a 3 year period. I am seeing the same thing at RE meet ups Attendance is down and newer investors are questioning whether to exit.

      I certainly am not implying it is not challenging elsewhere.  My view is RE is challenging everywhere.

      You did bring up rent by room which alternate rent models can increase revenue but they are more work and can be more risk. Not sure who on here had San Diego STRs in 2020, but close to half the year had a STR moratorium. The half of year that allowed STRs had no tourist places open (even the beaches) and occupancy was near zero.

      I hope I was clear that I still am a fan of house hacking, but I want people to understand there are likely to be challenges.  They may question the why.   I am convinced if they are patient that they likely will do fine.  In the short term, they may be better served investing in S&P, fab five, Mag 7, etc depending on risk comfort.

      I will be purchasing some RE this year and likely not at a significant discount as I am mostly looking at upscale remote markets where I do not have my local contacts.  I do not expect to achieve any where close to the returns I have historically achieved.   It is a tough market.

      Good luck

  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 961 votes
    8mo

    @Adriana Cuenca

    Hey Adriana, house hacking in high-cost markets like LA can be really tough because entry prices are so high. For first-time investors, starting out-of-state in Midwest markets often gives you a better shot at positive cash flow while still building equity. You can find duplexes, triplexes, or small multifamily properties for under $250k–$300k, and professional property managers make it easy to run them remotely without being local. It’s a way to get started without over-leveraging or taking on too much risk.

  • Alfath AhmedBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
    8mo
    Quote from @Adriana Cuenca:

    Hello everyone!

    I would like to use the method House Hacking for my first real estate investing, is that even possible in Los Angeles? I checked Redfin but everything looks very expensive.

    And thoughts or ideas? Thank you!


     Yes you can probably only afford a duplex though. It's expensive but the values go up. You should look to buy one off-market. Get it for 15-20% cheaper than market value. You can live there for 1 year, then re-sell in 2-3 years for a good profit. 

  • Member since 2022 · 11 posts · 6 votes
    8mo

    House hacking in LA is definitely possible—just requires being strategic about location.

    Multi-family properties exist in less "sexy" areas like South LA, parts of the Valley, Long Beach, Inglewood. Price-to-rent ratios are way better than the Westside. You probably won't cash flow day one but you can seriously reduce your housing cost while building equity.

    Another angle is the ADU play. LA's laws are really favorable right now—60-day approval, no owner-occupancy requirement, and new ADUs are exempt from rent stabilization for 30 years. LA County even has free pre-approved plans.

    If you're remote/hybrid, expanding to Riverside or parts of OC opens up more options too.

    The tricky part is knowing if a place will actually attract renters—what's nearby, noise, what it's like to ACTUALLY live there. That's usually where I spend most of my due diligence once I find a listing worth looking at.

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