All Forum Posts by: Kim Chong

Wow! I am overwhelmed by everyone who took the time to reply and post an opinion. This is very helpful for me. I really like SFH investing because it seems to be less active (important feature for me) and not subject to rent control...so it is helpful to know that other people are doing it successfully as well. My house is in a nice neighborhood on a large plot. It was bought for personal use and seemed to be a poor investment until it was paid off (cash flow) and someone told me it appreciated $200k in the 3 years I owned it. When I looked at the multifamily offerings locally, it seemed they all had negative cash flow as well but not as badly for the area...which made me wonder if it is smart to stick with SFH. Going further out of LA and OC, the numbers looked way better but it occurred to me that I would just have too many properties (one day) and that just multiplies the time and stress so I'm aiming to stay closer to home even though it will take longer and cost more. In the last few days, I have been entertaining the possibility of an ADU based on some family advice. It seems to make a lot of financial sense and I liked that the flow of the property allows for one without disrupting the SFH feel and overall charm of the home/garden. I know that is not a purely investment preference but it is really important for me to preserve what is good about the place and the neighborhood. So this project should take me awhile (1-2 years?). If it works out well, it might be a model to repeat. I like the tangibility of rental home investing. I invest in index funds as well but it does not have the same feel even when it blows my rental side gig out of the water. I'm not sure what my goals are to be honest! I like to learn and grow so this is a nice venue. I think I would like to be 100% supported by the rental income one day. Thank you everyone for weighing in on this matter. Everyone had great points. I really appreciate it very much!!!

I am looking to invest in the Los Angeles and possibly Orange County California area. I have 1 paid off single family rental home managed by a property manager. After taxes and funding investment accounts, I have $200k per year leftover to invest. I have a busy job and like to keep my investments as passive as possible but like the tax benefits of owning real estate. I am currently not interested in out of state investing. I am not sure what my next step would be. Should I stick with another SFH or go up to multi-family? I'm concerned about rent control and policy changes overall favoring tenants now in regards to multi-family rentals but I'm not sure if that is something I should be concerned about.