Strategy for first time buyer in LA, duplex or condo?
Hello, I've been trying to think of the best strategy for my first home purchase in LA and wanted to tap into this forum's wisdom!
As we all know, prices have sky rocketed which makes buying a property in Los Angeles very difficult. For my first home, I'm debating whether to buy a duplex, which would range around 400-500k, or to buy a 200k-230k 1 bed 1 bath condo in the burbs for starters. The condo option appeals to be me because I'm pretty sure I'd be able to pay it down quick and then acquire another condo in a year or two. Paying down a 200k property isn't as daunting as dealing with a 500k duplex as my first purchase.
My Agent says Cypress Park is on the rise and a duplex in the area is sure to give me appreciation. My agent does not recommend going the condo route because of HOAs and dealing with neighbors, etc. The duplex would hang me up for about 3 years at least, if not more, because I'd have to deal with a much bigger mortgage and also TONS of rehab work. Whereas, if I go the condo route, I'm mainly looking for something I could pay down quick and then make a decent cash flow once it becomes a rental. Not so much hopes on appreciation.
I'm also worried about real estate prices going way down once interest rates rise so I don't want to buy anything too expensive. I keep hearing that prices will correct eventually and would like to save a bigger purchase for when that happens.
Does it make sense to stick with a lower priced condo as a first purchase (just so I could get out of renting)? Or should I go the route of the duplex and ride on the hopes of appreciation in an up and coming part of town? The area isn't nice at all right now so it wouldn't be fun living there for a while. I'd love to hear your thoughts on my dilemma!
Thanks!
mario