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?