Seeking Advice on a first deal

@Dionte Griffin,

Great question and welcome to the world of real estate investing! Since you're in Los Angeles, where prices are sky-high, you're already thinking like an investor by considering cash flow and cost efficiency. Let’s break down both options and then I’ll recommend a clear path forward, including some plug-and-play turnkey markets out of state.

Option A: FHA Loan & House Hacking in Los Angeles
Pros:
Only 3.5% down with FHA — great for low capital.
You get to live in the property and reduce your housing cost.
You’ll learn hands-on as a landlord.
Appreciation in LA over time can be significant.

Cons:
LA properties are very expensive, so 3.5% of $700K+ is still a lot (~$25K+).
Cash flow is often negative or breakeven in LA unless you rent rooms (which can be intensive).
You'll be location-bound and may not build scalable cash flow quickly.

Option B: Buy Out-of-State Rental (Turnkey)
Pros:
Lower prices = lower down payment (often $25K–$40K total gets you in).
Properties can be fully rehabbed, new builds & tenant-ready through turnkey companies.
You can get positive cash flow from day one (typically $200–$400/month per property).
Easier to scale quickly.

Cons:
You're remote, so you rely on property managers.
Slight learning curve for managing out-of-state investing.
Slower equity growth compared to appreciation-heavy markets.

 So… What Would I Do?
If you're young, scrappy, and okay with some hustle:
--Start with Option A: FHA house hack only if you can buy a small multifamily (duplex/triplex) in LA or nearby. You’ll drastically cut your living costs while owning in a high-growth market.

But if LA prices make this unfeasible or you don’t want to live with tenants:
--Start with Option B and buy a turnkey rental out of state for cash flow. You’ll be a landlord with less capital required and start building passive income now.

** Best Turnkey Markets (Midwest & Southeast)
If you go with Option B, here are high-cash-flow markets with affordable homes:

Midwest:
Indianapolis, IN – Strong rental demand, affordable homes.
Cleveland, OH – Low prices, high ROI, great for beginners.

Southeast:
Birmingham, AL – Great landlord laws and low home prices.
Byron, GA – Military presence, strong rental market.
Memphis, TN – Cash-flow king, but vet your property manager carefully.
Columbia, SC – Growing population, stable rents.

Suggested Next Steps:
Decide your comfort level: House hack in LA vs remote investing.
If out of state, consider working with a turnkey provider. 
Line up financing: 20–25% down for turnkey deals or FHA for house hack.
Learn from others: Join local or virtual real estate investor meetups (BiggerPockets, REI groups).

Let me know if you ever want to discuss specific markets or deals - always here to help!

Best of luck,

Melissa