Not easy..but possible. In the last 6 months there have been 50 home sales in Sherman Oaks of $450,000 or less, and several under $400,000. Keep in mind that under $400,000 you are really scraping bottom of the market - the homes are smaller, older and usually on busy streets or backing up to commercial zones. These homes will only produce cash flow on a monthly basis with high down payments - 30% or ore usually. You will get a better monthly return on condos (even with HOAs!)
The rental market is strong - if you price it right. I know that sounds obvious, but it is important to note that there are quality tenants out there! I just rented out a property in 2 days with over 10 applicants.
Let me know if I can be of any help.
#1 Listing and Selling Agent
Keller Williams Realty