Newbie from Silver Lake, Echo Park, Los Angeles, CA

[Sam Choi]

Hello,

My name is Sam Choi. I currently live in Walnut, CA near Diamond Bar. I would love to get into real estate. Currently, my dad has 1 4-unit property. So I would really like acquire some properties of my own. I would eventually like to own many units and live the free and clear life!

However, the first thing I have to do is search for my own house to live in with my fiance. I was really looking for a house in Silver Lake or Echo Park, as we work in the Fashion District, so that will minimize drive time.

I was really trying to buy our first house and look at it as an investment. Because that will give me some very helpful insight into future properties. I've been looking at zillow and redfin and all of the other sites, and it seems there are only fully remodeled houses on there, so essentially, I would be paying full retail. I was wondering if there was a way to search for off market houses in these areas, so I can find a fixer upper house that I would be able to purchase for cheaper, and do some renovation while living there. This way, I would be able to build equity, and when I do eventually sell or rent out the property, the value will be much higher. 

I am aware that there are not many properties left in the Silver Lake and Echo Park areas to purchase, however, if anyone can provide some advice or information, that would be greatly appreciated.

Also, the other thing I would like to ask is do you think that SL and EP will continue to appreciate, or do you believe the house prices will plateau soon, as they have reached pretty ridiculous prices at this point. Because I would like to purchase in an area where the houses will most likely appreciate over time, and I can add value through remodeling.

In case there were no more viable properties in SL and EP, I have also been looking at Elysian, Angelino Heights, Glassell Park, as well as Mount Washington. What do you think about these areas? 

There are just so many options and such little time as we are in market to purchase in the month of January, as we will need to complete renovations by our April wedding day. 

Sorry for the long intro! I just have a lot of questions, and would really appreciate it if anyone can provide some insight. Thank you all so much!

[Manolo D.]

Sam Choi Sorry I got sidetracked there for a bit, but for FHA loans, you only need to live there for 1 year, then you have the option to sell it. The lesser you renovate the house, the less equity creation is going to be. So it will depend on how much you want to do. As investor thinkers, we need a mindset like that, but if you go for retail, then you might be paying for a higher price. Good luck on that search.