I am looking to buy my first 3-4 unit multi-family in the next few months and am looking for an investor/agent with experience in the Long Beach/Carson/Torrance market. Plus for experience with FHA financing (do you understand the self-sufficiency rule?). Many of the agents I have been talking do not understand what an investor looks for. If you have the experience or know someone who does, please point them my way!
@Austin N. I can refer you to a good agent for your situation in that area PM me and we'll discuss
@Austin N. - I would recommend talking to a lender about the FHA self-sufficiency rule. If you need a referral for a lender, I can help out.
Most areas of Torrance you won't be able to cashflow. You'll have a better chance in Long Beach & Carson, but it will still be tough depending on your assumptions. Cashflowing with 3.5% down in LA is not easy.
@Nick Hedberg It’s not cash flow if you don’t finance it 100%.
@Nick Hedberg - Thanks for the recommendation. That follows pretty close to what I have seen in the market over the past year. This has put most of my focus in Long Beach. It's definitely not easy to cash flow in LA, especially with 3.5 - 5% down, this has me motivated to find the people who have access to off market deals.
Hi Austin, I'm working with FHA investor clients currently and the self sufficiency rule. Am well acquainted. My office is in Manhattan Beach and I specialize in El Segundo, Hawthorne, Gardena, Lawndale, Torrance, Manhattan, Hermosa, and Redondo... South Bay Beach Cities and Beach Cities adjacent. Competition is certainly tough for FHA investors in the South Bay, I don't want to sugar coat. If you have any questions please feel free to reach out. Are you working with a good local lender?
@Austin N. - I understand. Having access to off market deals will be helpful. In my experience most of them cash deals where the property needs a lot of work which means won't qualify for FHA. Certainly not all, but the majority unless your in high end areas like Beverly Hills.
I would also look into the FHA 203(k) loan: https://www.hud.gov/program_offices/housing/sfh/20...
It will give you a lot more flexibility in the properties you can purchase. Also it might not be a bad idea to get qualified with Movement Mortgage. They do full underwriting upfront where you can close in 14 days with a conventional loan instead of 30 days. I'm not sure how an FHA loan impacts their time frames, but let me know if you need a referral. I have a great lender with Movement.