Multi-Family investing in San Diego, CA

Multi-Family investing in San Diego, CA

Lender · San Diego, CA · Member since 2020 · 5 posts · 0 votes

What are yours thoughts on Investing In multi-family homes or apartments In San Diego?

Key points to watch out for and things you wish you would have known before starting your journey?

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Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
5y
Originally posted by @Brenden Fredrickson:

What are yours thoughts on Investing In multi-family homes or apartments In San Diego?

Key points to watch out for and things you wish you would have known before starting your journey?

 Here are some of my thoughts

  • Realize that return in the short term, without a value add, will be poor or bad. 
    Competition for value adds is great.  
    competition for rehab flips is great.  
    historically buy n hold over long term has produced outstanding return.  
    ADUs are not a value add, but they can help the cash flow.  
    make sure you understand rental expenses; if you not familiar with the 50% rule then look it up.  

Good luck

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    • Real Estate Agent · San Diego, CA · Member since 2014 · 338 posts · 176 votes
      5y

      @Brenden Fredrickson

      San Diego is a great place to invest in for the long term. Are you looking to flip, buy and hold, short term rental, house hack? Work on putting together a team (Core Four) and then start analyzing deals and find something that works for your goals. Let me know if there is anything I can do to assist.

    • Dan H.Pro Member
      Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
      5y
      Originally posted by @Brenden Fredrickson:

      What are yours thoughts on Investing In multi-family homes or apartments In San Diego?

      Key points to watch out for and things you wish you would have known before starting your journey?

       Here are some of my thoughts

      • Realize that return in the short term, without a value add, will be poor or bad. 
        Competition for value adds is great.  
        competition for rehab flips is great.  
        historically buy n hold over long term has produced outstanding return.  
        ADUs are not a value add, but they can help the cash flow.  
        make sure you understand rental expenses; if you not familiar with the 50% rule then look it up.  

      Good luck

      • Lender · San Diego, CA · Member since 2020 · 5 posts · 0 votes
        5y

        @Mark Frattini

        Thank you Mark, I appreciate your feedback.

        I’d definitely be buying and holding on for long term.

        The (core four) excellent point, I’am new to the area so having a team specialize in multi-family will be a game changer. I currently analyze at least 2 deals a night on bp calculators, just learning how the numbers work.

        Thank you once again for your time.

        Best regards,

        Brenden

      • Lender · San Diego, CA · Member since 2020 · 5 posts · 0 votes
        5y

        @Dan Heuschele

        Thank you Dan,

        I’ve been reading about San Diego real estate quite often, and it’s always leads to buy and hold for best results.

        I’ll definitely read that book and make sure I master the calculations of all my expenses when buying rentals.

        Thank you once again, I appreciate your feedback

        Brenden

      • Ben McMahonPro Member
        Investor · San Diego CA · Member since 2014 · 341 posts · 139 votes
        5y

        Multifamily has been overvalued for years.  Everyone wants it, I wouldn't touch it unless you find a sick deal. Very rare.  Better would be to repurpose something into multifamily.  Hotel, vacant office space.  As long as the zoning allows.  

        Theres stuff in the midwest that seems attractive, but there's a lot of cons there as well.  Good luck Brah!!

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