New Member Introductions
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago on . Most recent reply

New Home Buyer and Hopeful Investor
Hello Bigger Pockets crew!
My name is Stephan and I am currently serving as a Security Forces Major in the USAF. I am projected to PCS to San Diego after my time here in Japan is up in about a year and I am looking to start utilizing my BAH to feed my future rather than handing it over to someone else. As such, my wife and I have decided that we would buy a home rather than rent or live on base at this next assignment. Our goal is to slowly accumulate properties at each assignment utilizing the VA loan and then refinance and rent out the home as we continue on to the next assignment. We are looking to buy houses that will fit our family (at least 3 bed/2 bath), that need a little work, and that will cash flow positively (at least enough to cover expenses both monthly and emergent). At a 2 year PCS rate, this should enable me to comfortably acquire 5 properties prior to being retirement eligible if all goes well! Now that I am finally introducing myself instead of just lurking the forums, I look forward to getting to know some of you or maybe even getting into business with you.
Some pieces of advice that would seriously help me out as a new homebuyer/investor from anyone with experience that would be so kind as to share:
- Any advice on the San Diego area such as good neighborhoods or potential teammates (relators, contractors, etc)
- Information on investing while serving as an active duty military member and effective utilization of the VA loan
- Advice on what to look out for when purchasing a home (deal breaker conditions of the house)
- What sort of cash flow should I be looking for in this region? (The 1% rule seems to be impossible anywhere within driving distance of Miramar!)
- And any other advice that is important to a newbie looking to purchase a home.. in an unfortunately expensive area!! (That 5% down payment to reduce the fees on the VA loan gets steep quick in San Diego!)
I have been digesting books as quickly as I can, but it is definitely a firehose. I am looking to make sure that I start off on the right foot so any advice is GREATLY appreciated!
V/R
Stephan G.
Most Popular Reply

The reality is that properties purchased in today's San Diego market will be initially cash flow negative. The SFR are more cash flow negative than the small multiplex. The word initially is key. In recent years rents have gone up over $100/month YOY. This implies that the initial cash flow (which is pathetic) has recently improved at a fast rate. On a SFR, I suspect at 2 years of $100/month rent increase that it would still be negative cash flow when you move out.
For cash flow, the small multiplexes work better. I like the detached multiplexes (or detached ADU) that each unit looks like its own property. These would be better for your family when house hacking and result in less tenant complaints when you are no longer house hacking. Also if it is a duplex and rents go up $100/month per unit, that is a $200/month in year 1 and $400 for two years. You can do the math for what it implies for a quad, but detached quads are a lot harder to find than detached duplexes.
As for neighborhood, different neighborhoods have different vibes. Each person has their own preference. Good school districts are Poway and Carmel Valley (there may be others but these are 2 of the better). Neither is that far from Miramar. They are both North of Miramar, Poway is inland from Miramar and Carmel Valley is coastal compared to Miramar. Neither of these areas will be cheap and they will be more limited in the multi unit options. Likely limited to only ADUs as the option. You will spend over $1M in either of these areas for a SFR with ADU. Areas with good schools are a premium.
Good luck