This falls into the 'no brainer' category.

I am all about the idea of buying a multi-unit property when looking for a home - yes, even for first time home buyers. It does mean that you'll be a landlord, and all that can come with that, but the economics tend to be so good that it's kind of a no brainer if you can stomach the landlord thing. There is currently a duplex for sale in Atwater Village that fits the bill perfectly: https://www.redfin.com/CA/Los-Angeles/4166-Willimet-St-90039/home/7136544 

I saw this property this week and it's super cute. It had a few great things going for it: 

- The two houses feel completely separate - seemingly on two different lots. Each has its own gated front and backyards, separate parking, mature fruit trees (Orange, lemon, pomegranate), etc. they feel more like neighbors then a duplex. Both are separately completely fenced in, they would both be great places to have a dog.

- Both units have been completely remodeled with some nice features like new tile new cabinets new dual pane windows throughout, new appliances, central heat and air, etc.

- The two bedroom unit is fully big enough for an individual, a couple, or even a small family. It has two bedrooms plus a very large laundry room that would be great as an office in addition to its own private backyard, own parking etc. The three bedroom is a great size and really nicely done.

Of course, some downsides too:

- This part of Atwater is not as nice as a little further south. The neighborhood houses are a little less cared for, the street is not as cute, etc. The street dead ends into the railway - meaning it's going to be loud when the train goes by. It's also a bit of mixed industrial residential feel with a few warehouses nearby.

If you can stomach the landlord and train noise aspects, this property could be a steal.

The math:

Rents in this part of town are crazy right now. I'd guess you could probably get $1500-$2,000/month for the 2 bed and $2500-$3,000/month for the 3 bed (if not more). With 20% down (which is a lot, yes, for sure - but, this property would also qualify for an FHA loan and you could put down as little as 3.5%) rent out one, live in the other, pay about $1300/month to live in a 2 bedroom HOUSE, or pay $2,000/month and live in the 3 bedroom HOUSE (oh, and own them both). This is before tax breaks too - after tax breaks you're talking probably $400/month to live in the two bedroom and OWN them both. See what I mean about a no brainer?

Sweet House Alert!

This adorable home on the Eagle Rock/Highland Park border just came on the market and is the stuff that dreams are made of: https://www.redfin.com/CA/Los-Angeles/6231-Annan-Way-90042/home/7084685. Those stairs! That fireplace! The views! The multiple patios! So much character charm and grace. I want a friend/client to buy this house. Any takers? It's sure to go fast!

Simmzy's Comes to Burbank with Great Food & Fun Atmosphere

Southbay's mini-chain of casual, beach pub grub has opened its third location in Burbank, off of Olive. I got the chance to check it out last week and overall was impressed with the food, the staff, the drink selection and the eclectic space. In a town where more food options is definitely welcome, Simmzy's is a nice newcomer worth trying out.

Website: http://www.simmzys.com/

Eater LA Post about opening: http://la.eater.com/2015/1/15/7553067/simmzys-burbank-gastropub-craft-beer-bar-opening-photos

Low Down Payment Options - FHA vs. Conventional

Saving 20% down to buy a home in Los Angeles typically means putting aside a BIG chunk of change. There are alternatives to a 20% down loan that just recently became more appealing however.

From Motley Fool: "In late 2014, Fannie Mae and Freddie Mac both announced new lending guidelines, as well as new lending programs for first-time homebuyers. Under both programs, borrowers who have a credit score of at least 620 can qualify for a conventional mortgage with just 3% down."

The catch to the 3% down is that you have to pay mortgage insurance - however, with these new lending guidelines passed at the end of 2014, the annual premium was reduced from 1.35% of the outstanding loan balance to 0.85%. So, $100,000 loan means $850 a year in premiums. Say you've got a $400,000 loan, that's $3400 a year/~$285 a month in added insurance costs. Yes, it's lower than it was, but still, UGH!

Motley Fool: "The biggest difference between an FHA loan and conventional low-down-payment options is what happens a few years down the road. Specifically, if you put the required 3.5% down on a 30-year FHA loan, you'll be stuck paying mortgage insurance for the entire term of the loan, no matter how much of the loan you paid back. With conventional loans, you can request that your mortgage insurance be canceled once you've paid down the balance to 80% of the original value of your home."

Lots to consider with the type of financing to get and varies based on your credit score, down payment amount, loan amount, interest rate considerations and more.

Read the full article at Motley Fool for more detail or I can put you in touch with my preferred lender for more information: http://www.fool.com/investing/general/2015/01/25/dont-be-fooled-by-the-new-fha-mortgage-insurance-p.aspx

Time to refinance?

Interest rates are at near record lows once again. This of course makes for a great time to buy, but also a great time to refinance. I just refinanced our house in Burbank less than a year after purchasing. Outside of the appraisal fee, it was a no-cost refinance and saved us a couple of hundred dollars each month. With rates this low, what's stopping you?