Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago on . Most recent reply

User Stats

4
Posts
1
Votes
Kyle Engle
  • San Diego
1
Votes |
4
Posts

[San Diego] 1st Time Home Purchase: SF or Multi-Unit?

Kyle Engle
  • San Diego
Posted

My wife and I are looking to make our first home purchase in San Diego and would prefer to invest in an owner-occupied multi-unit building. We found a recent property that we could live in, but not be cashflow positive until after Year 5+ (with conservative assumptions). What are the pros/cons or factors to also consider this opportunity? First time posting, would love to hear feedback and route any calculators for this type of option! Thank you.

Property details:

  • - 3 unit building (2bdrm, 1bdrm, studio)
  • - Rental Income (approx): $5,500/mo
  • - Mortgage (approx): $7,500/mo
  • We would choose to live in the 2bdrm, which would cut the rental income to ~$3,000 ($4,500 to cover the remainder of the mortgage)

Alternatively, the single-family option:

  • -We buy a single-family home and pay the mortgage of ~$4,500.

    Most Popular Reply

    User Stats

    49
    Posts
    33
    Votes
    Trevor Haney
    • San Diego, CA
    33
    Votes |
    49
    Posts
    Trevor Haney
    • San Diego, CA
    Replied

    The deal isn't terrible, not great but not terrible. I like to think of it like this. When house hacking the biggest purpose is to reduce your mortgage by having tenants. Looking at your deal, you and your wife would be paying 2k /month for a 2 bedroom place. About on par with market prices isn't ideal. BUT if you're like me and still rather new to real estate, needing to build a reserve, isn't your forever home, etc. Then I would argue this deal isn't a bad first step. My first condo purchase is still negative cashflow. Initially $450, now $150. However, after 3 year of appreciation and paying down the principle, I'm looking at about 60K in equity I can use to fund my next deal.

  • Trevor Haney
  • Loading replies...