Real estate continues to be he largest financial purchase most Americans will ever make. So why not make that purchase be for something that has greater potential to increase your net worth.
This post and the follow up posts from my Real Estate Mogul Series, is meant for anyone in the Greater Los Angeles area| ( but could also apply to other markets) who has saved money for a down payment, has been working hard at keeping a good credit score, has steady income and would like to start building wealth and making their hard earned money work for them.
What do I mean by “investment” when purchasing your property? There’s all sorts of investment types of properties which I’ll dig into deeper in future posts. But not every type is for everyone.
Here are a few examples of types
RESIDENTIAL RENTAL : ( non-owner occupied ) but can be anything from a
Single Family House to a Duplex (2 unit), Triplex (3 unit), Quadplex ( 4 unit)
note: non-owner occupied is important and I will explain why in follow up posts.
Anything larger than 4 units is no longer considered residential and falls into multi-family / apartment and has different lending requirements as well as legal and tax implications so I’d save these larger deals once you’re a seasoned investor.
FIXER: To live in, buy -hold-rent or flip. This can be a single family 1-4 unit or condo.
Not all buyers want to be landlords so buying a fixer and living in it until it appreciates or flipping it is the way to go.
Both of these options have their pros and cons as well as a slight learning curve. You just need to take the time to research, learn the process in addition to the basic financial calculations and work with a real estate professional who can help you with valuations, neighborhood market data and refer you reputable vendors to be apart of your team.
It’s also a mind set. Once you decide to become an investor buyer your decision making process must change as well. Purchasing a home is a very emotional process where investing all comes down to the numbers. The numbers don’t lie. Which is actually reassuring because if you are diligent and can hold back the emotions and make your purchasing decision based on the numbers and manage the costs then you stand a much greater chance your purchase turning a profit.
Los Angeles County is one of the most populous counties and growing.
With 2/3 of Millennials preferring ( according to the National Association of Realtors) to rent than own it’s a no brainer that the time is now to think about becoming an investor buyer. There is a price range / property for pretty much anyone who can get a loan or has the cash to purchase and is willing to venture out and explore all that the Greater Los Angeles area has to offer.
That being said there is a lot to learn so make sure to stay tuned for the next post where I will cover the pros and cons of purchasing a Single Family or Condo – as an rental income unit.