@Anthony Johnson
What you're planning on doing is very doable if you're determined and play it smart. That's exactly what I did to start out in south LA. Have you seen all the building activity going on just north in downtown LA? Unless something drastic happens (Hello to The Rock in San Anereas) in 10 years most of these areas will be priced out of the middle class buyer's pocketbook. And just so you know, the Juanita Tate marketplace at Slauson and Central (CVS, starbucks, grocery store) is beyond a success. I happened to try and go to the CVS and parking spilled out to the steet last night as there was almost zero parking on the huge parking lot with all the shopping for New Years.
Worst case scenario is that you pay the 3% down to get a roof over your head and have at least over 1/3rd the mortgage paid for each month. In two years you can hit repeat and move into an SFR that actually has TWO buildings on the lot hence making it a MULTIFAMILY building in disguise. You can rent the 2nd unit out just like your first go around. I actually missed out on such an opportunity not too long ago.
After purchasing a multifamily to start out, you won't qualify for a 3% downpayment on another multi family but you would for an SFR after you've done the multi. I got this from a loan officer so run this by your brain trust just to make doubly sure.
That being said, I would simply get a REDFIN account and zero in on 90011 (multi families). The list price is just a guide as you know you will be bidding less than what they're asking for to SEE where they're at with regards to a number that they are willing to let the place go for. And wherever you see "motivated seller" know that you're especially going to bidding less than asking price.
Cases in point:
http://www.zillow.com/homedetails/4200-Wall-St-Los...
http://www.zillow.com/homedetails/4180-Dorsey-St-L...
http://www.trulia.com/property/3155414481-750-E-52...
http://www.trulia.com/homes/California/Los_Angeles...
As you will see, there are quite a few to choose from and you will find some gems if you comb through diligently.
For initial rough rent estimates, use www.rentometer.com to see how much you can potentially rent the extra unit for and use https://www.zillow.com/mortgage-calculator/ to see much you can expect your monthly mortgage might be every month. In my case, I actually under priced my extra unit when I started out because I was told by everyone that students wouldn't want to live west of the 110 fwy. Boy were they WRONG! And due to heavy and diligent tenant screening, my tenant was great so I was willing to live with less extra dollars till he graduated from medical school. Here I was, networking with a future high powered doctor by default as a result of being a landlord. Hello fringe benefits. ;-)
I've found that multi families in the 90011 area are priced more "affordably" than those say to the WEST of the 110 fwy. Maybe it's partly it's closer to the west side and/or because students at USC would rather live closer to the campus or live on the Westside which as you know some say is "the right side"! ;-)
Good luck and make it happen.
Happy New Year!!
