Building Relationships in the San Diego area

[Ashley Mierez]

Im a newly licensed real estate agent in San Diego looking to connect with local agents, investors and wholesaler in the area. My goal is to learn the market and educate myself on investing here. Me and my husband have a goal to house hack with a duplex or triplex. Any advice would be super helpful. 

[Dan H.]

I have been successful in the San Diego market mostly doing brrrr.   The local market has never been worse for a buy and hold investor.  This is a combination of the all time worst rent to purchase cost ratio and interest rates that are near the high for this century.   Some traditional buy and hold RE investors have transitioned to flipping.   Those few that are still buying to hold virtually always are doing large value add that virtually always is more than just a rehab.  

I purchased $4m Dec of 2021 and have one unit left to rehab (starting it Dec 1 and my 22 year old son will be running his 2nd rehab - it will be a live-in rehab so slower than we usually achieve).   If you want to see it pre rehab, we may be able to arrange something for Dec 1 (it is in Pt Loma near OB).

I get a lot of off market property listings sent to me.   I am barely looking at them because with my underwriting (that some would consider conservative), even properties below retail bleed cash.   I do see some flip opportunities, but flipping is a job; stop flipping and the making of money stops,

My next purchase is likely to be in a different market with lower profit expectations than I used to achieve in the San Diego market.  If it is in San Diego, it will likely be a sophisticated value add and not passive.

So if you house hack a local property at high LTV, recognize it will cost you significantly more than renting a similar unit. It likely will require years to achieve cash neutral. If you hold it more than 10 years you likely will do great, but in the short term it will be tough. Negative cash flow is difficult especially on more extensive tenant turn overs or when dealing with a PIA tenant.

Let me know if you want to see the unit being rehabbed on Dec 1.

Good Luck