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Updated about 8 years ago on . Most recent reply

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Denny Moody
  • Investor
  • San Diego, CA
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Opportunity for creative land use in San Diego. Any ideas?

Denny Moody
  • Investor
  • San Diego, CA
Posted

I recently learned my dad owns a lot in La Mesa, CA, a neighborhood about 15-20 minutes outside of downtown San Diego. He mentioned he wants to do something with it but doesn't know what.

I'm sure if I put together a plan and pay for development, he would be willing to partner on something, but I need to figure out what the best option would be. Here are 2 ideas:

- build affordable modular home on the lot for long term rental. This would require substantial costs other than the home as the property would need to be connected to utilities, and apparently La Mesa charges something like 30K to connect to water.

- buy a vintage Airstream, fix it up and decorate it super hip, and operate as a vacation rental. I am a bit more comfortable with this as I have experience with STR, but in a different neighborhood. This of course would also need utilities, but we may be able to somehow tie into his house next door to the lot. The downside is that La Mesa isn't super central so not necessarily the best neighborhood for Airbnb.

I need to do more research and run the numbers on both scenarios but I wanted to see if anyone had any other ideas or input. How can I creatively use/develop this lot to benefit myself and my dad?

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Karen Margrave
  • Realtor, General Contractor, and Developer
  • Redding, CA & Bend OR
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Karen Margrave
  • Realtor, General Contractor, and Developer
  • Redding, CA & Bend OR
ModeratorReplied

I don't know that area at all. But, as has been mentioned, zoning is what will determine what type of project can be built on any given parcel. Also, as we all know, real estate is all about supply and demand. Is there a demand in La Mesa for housing or short term rentals, etc.? If so, what type of housing, MFR, SFR or ? What are the number of rental units available at any given time, plentiful or scarce? Are rents on the high or low end?

I will tell you, permitting and utilities are huge factors to be weighed, along with City requirements, set backs, curb, gutter, sidewalk, landscaping, etc. in order to be able to do any type of airbnb offering. 

There's so much that goes into developing a parcel, from figuring out the highest and best use, demand, determining the actual costs associated with development. For someone without any experience it can be challenging. The problem with development is that you don't know what you don't know, and small missteps can lead to losses, so be sure there's healthy profit margins to start with. 

  • Karen Margrave

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