New to investing

[Brandon Ortiz]

Hey everyone, I am currently looking into buying my first multi family home in order to house hack. I’ve only been looking on Zillow and all the houses I see are very out of my price range. Can anyone let me know if I’ll have a better chance with a realtor or something that other investors use to find a decent multi family property? I want to get into real estate investing but I don’t have any guidance other than the bp podcast and YouTube videos. Thanks everyone 

[Joey Banasihan]

Hey @Brandon Ortiz! Excited that you are out here seeking to learn and get started in real estate! My advice would be to do some digging to find a investor friendly real estate agent in your area (you can use the search tool here in BP or make a post asking for some help).  From here, you are just meeting folks and getting better understanding of the market, hopefully some investor friendly lender referrals to help you understand how you will finance your first property based on your current financial situation. Then hopefully the agent will talk about different strategies.

Just remember that house hacking is amazing start, but there is more to it then just multi-family homes. Single Family homes and renting room to room is also a great option to get started and off-set your mortgage payment. Since you are in LA, there is also an opportunity to look for SFH that has the potential to build an ADU in the future, so after you leave you can have two rentals on one property. Many options, but finding an investor friendly agent (be sure to interview a few) should get you on the right path. Hope this helps!

[Andrew Postell]

@Brandon Ortiz I would encourage you to go local when you buy a house.  The lender that prequalified you...if they are local, they should know good agents that are local as well.  Your local network will ALSO have references too.  Similarly, there is a "find an agent" button at the top of every Bigger Pockets page.  You can click on that and it will connect you with a local agent close to you.  Go local.  That's your best bet. 

[Michael Dumler]

@Brandon Ortiz, buy a single-family home instead with an in-law suite that you can rent out as either an LTR or STR. As noted above, there are more strategies you can explore aside form from your classic duplex example for house hacking.

[Ben Firstenberg]

If you're in LA, finding a house hack is going to be tough. A realtor may be able to help, but likely they would just help you find locations where prices are lower and closer to your budget. They don't have access to "special deals" or anything. 

Have you considered buying just a single family home and renting out extra rooms? Multi family buildings in competitive markets like LA (and here in Atlanta) are typically expensive, hard to come by and competitive. Making them not so great options for house hacks. Single family homes with extra bedrooms, however, are much more common and typically can be found cheaper. 

Hope that helps!

[Charles Renn]

Hey @Brandon Ortiz,

There is a lot of useful information here already, but if I can add anything, it's that getting started is the hardest part typically. It's great to have goals of multi-family house hacking, but it's also realistic and a good exercise to see where you can get into home buying. You're right, house hacking in LA County is expensive, however, if you're open minded to things other than multi-family you can start to see other options like renting out rooms in a condo, SFR and adding value to a property by adding rooms, or converting spaces. This all comes down to your level of risk you're willing to take and the amount of capital you have access to.

Hope this helps and please do reach out to me directly if you'd like to discuss further.

Best,

Charles

[Justin Hammerle]

@Brandon Ortiz - Would recommend working with an investor friendly agent in your area.  You can search this site using the "build your team" tab.

[Julien Jeannot]

Welcome,

Zillow pulls from the MLS which is the source for all listings.

You can try off market strategies such as pulling list and calling the owners or networking with wholesalers.

[Crystal Smith]

Quote from @Brandon Ortiz:

Hey everyone, I am currently looking into buying my first multi family home in order to house hack. I’ve only been looking on Zillow and all the houses I see are very out of my price range. Can anyone let me know if I’ll have a better chance with a realtor or something that other investors use to find a decent multi family property? I want to get into real estate investing but I don’t have any guidance other than the bp podcast and YouTube videos. Thanks everyone 

I recommend working with a realtor that specializes in investment properties. Why?  Almost everything that you find on sites like Zillow is syndicated from multiple listing services (MLS) sites that realtors use. Also, the information on sites like Zillow is usually 8 to 24 hours old. If you work with the right realtor you will see the information before it gets on Zillow.  Once you hire a realtor you should continue to use Zillow but only for properties that are listed For Sale By owner. Regarding your price range- You should look for properties that aren't decent and may require a renovation. Those properties will most likely be in your price range.  

You should also consider calling on people who have ads to rent their multifamily.  They may be interested in selling.  You should also consider establishing relationships with local wholesalers.  Let them know what you're looking for.

[Benjamin Sulka]

Welcome to Bigger Pockets!!

[Ryan Thomson]

@Brandon Ortiz When you say "out of your price range" you mean you can't qualify to buy them because a lender has told you that you don't qualify? Or do you mean that you don't want to pay that much in monthly payments? 

Either way, here are two potential solutions/reframes. 

1. If you get a duplex you can actually use the rent from one unit as qualifying income. This will
boost what you qualify for.

2. If you don't like the monthly payment, remember that you are renting out part of the house and that will reduce your monthly payment. Also remember that you are avoiding rent, while benefiting from all of the money makers of home ownership.

[Ryan Thomson]

@Brandon Ortiz you may also just be priced out of affording a home in your area. If that's the case then:

1. You'll need to find a new area

2. Partner with someone to house hack together

3. Get a cosigner

4. Figure out how to make more money

[Sebastian Marroquin]

Hello! My name is Sebastian and I am a Realtor and investor in the Los Angeles area. 

I help people find off market homes, I help them renovate and also help them add second units (garage conversion ADUs and new construction ADUs). 

I'll post a couple of photos of our latest one for ourselves. 

We bought a home off market in an area that sells for $700k and we found it for $525k (now fixers like this one would be closer to $600/650k) 

Then we converted the garage to a 1 bedroom and 1 bath unit with about $80k that will rent for about $1800 per month. 

Anyone that lives in the LA area - more than welcome to reach out and see some of the projects we are doing in Claremont, Pasadena, Altadena, El Sereno, and Highland Park for now!