Hey everyone! So I know that the Los Angeles area is notorious for being "impossible" to cashflow. However, I've learned that some people have been able to cash flow with turnkey properties that are small multifamily. Does anybody have any advice, as to how one could accomplish this? I've been analyzing some properties and the numbers still don't work out.
You probably aren't going to cash flow with a house hack unless you end up with the roommate route or other creative solutions like that, it is tough to cashflow when you are living in one unit even in cheaper markets, so come up with a new strategy or adjust your expectations.
I was considering house hacking in LA and I couldn't make the numbers work, either. Plus, I couldn't beat out the cash offers on the properties where I could make it work. I made 10 offers in four months (all in South LA) and 9 offers were all beat out for cash offers at well over asking price. I did get one offer accepted but I backed out b/c the numbers still didn't make sense. I decided to focus on a slightly more affordable area (Inland Empire) and partner with my brother to make it happen.
Like @Aaron K. said above, you may need to adjust your expectations and strategy. Good luck!
I think that's life, bro ;)
@Christopher Boshae I househack in LA, but I put 20% down and am still out of pocket about $300/mo. I post analysis on 2-4 unit properties in LA on my IG @househackla if you want to check it out. I haven't really found anything that cash flows while you live in it. Househacking in LA usually just lowers your monthly housing expense and allow you to build equity and then if you ran your numbers right, you should hopefully be able to cash flow when you move out. I would say to cash flow while you live in it you'll need to put up a big down payment or buy a fixer.
@Mark De sagun That channel is super helpful! Yeah, I've changed my expectations quite a bit. However, a must for me is that is should cash flow when I move out.
Similarly to you, I've also been looking at househacking around the LA area/SoCal, but have also seen that the numbers don't work out unless the principle amount is cut in half.
In addition to what some of the other members have mentioned, consider expanding the areas in which you're looking for (eg Inland Empire), the types of properties you're consider (eg single family homes while renting out other rooms) and/or adding opportunity to existing properties (eg adding a BD, building an ADU).
Good luck to all of us!
@Eric Chiang I totally get your struggle! Yeah, many times the numbers don't work. In general, I am finding that LA requires some creativity to make money in RE.
Same boat! I have been constantly analyzing properties all over and it doesn’t seem like house hacking is an option unless you have the cash to back it up. Properties are selling for way over asking. The numbers just don’t seem to add up unless you’re putting 20% or more.