Buying my first house in San Diego at 22

[David Najera]

I am a 22 year old student attending SDSU and I'm 2 weeks away from closing escrow on a 4-bedroom house. I thought I'd share my journey and make updates as time progresses. The house is being sold at $380,000, which is very reasonable in San Diego's current market. This is primarily because the house has a shared wall with the neighbor and is in a low-income neighborhood. However, for the area it is on a quiet street and is only 10 minutes away from downtown (Market Street/Mt. Hope). 

It is move-in ready so I will only be upgrading the tile floors to to lament, adding a wall in the living room to make a fifth bedroom, and converting the garage into a studio. With myself living in one room, each other room bringing in $600 and the studio renting for approximately $850 I estimate I will bring in $800 monthly. 3,250 (gross income)-2,200 (mortgage)-250 (utilities)=800 (net monthly profit). 

I have been marketing the rooms for about 2 weeks, but currently I am having a tough time finding good potential tenants. I do screen applicants pretty strictly and have received a lot of inquiries, however the calls I have received have been less than Ideal (not terrible, just not what I'd prefer). I am wondering if I should be more lenient on the type of tenants intend to rent to (provided they pass a credit check), lower the rent (I'm open to suggestions from people familiar with the area), wait to hear from more potential tenants, or a combination of these options. 

I'd also love to hear any additional input or questions about my discussion,

Thank you!

-David 

[Nicholas Baughman]

I'd be careful converting the garage to a studio. If the city finds out they may fine you and make you convert it back. I also see your net income is around $800 but I don't think you're saving for cap ex either.

Just curious, how much did you put down? Is it a single family or multi family? Im looking to get in to multi family is SD as well but have entertained the possibility of doing a single family and renting each room out as an Air-bnb. However, places like Coronado from on this and I'm thinking most other cities are starting to as well.

Anyhow, congrats!