BRRRR in San Diego for new investor

[Cathy Fitzwilliam]

I am a new investor. I own 50% of one property and am interested in the BRRRR strategy. When I run the numbers on properties in San Diego, they do not cashflow positive, even if I had the funds to invest. I am looking for advice for newbies. Should I be looking for financing first or for a real estate agent? Is San Diego too tough of a market to start out in? Should I be looking at markets with a lower entry cost? Ideally, I would like to use the BRRRR strategy with a small multifamily to start. My partner is a contractor.

[Steve Meyers]

@Cathy Fitzwilliam to Dan and Twana's point San Diego is a hard market to initially cash flow in. The higher interest rates make it that much harder. What some of my clients have done in the past is look for more creative rental avenues to be able to charge a premium on rent such as the traveling nursing niche like furnished finder. A lot were doing air bnb up until the new rules came in place for the city of San Diego but you can still find a property outside the city that you can potentially do STR with to cash flow. Putting a long term tenant in a property here that you are BRRRRing won't cash flow unless you plan on leaving a good amount in the deal to do so, but that defeats the purpose of the BRRRR. You'll definitely get the long term appreciation in the San Diego market since our supply levels remain low which helps to insulate our market here, but it will be hard to cash flow on immediately unless you use one of the above strategies I mentioned. Hope that helps