Does anyone have experience house hacking in San Diego?

Question

So I'm looking to purchase my first property in San Diego and I've deduced that the most effective way to do so is going to be via house hacking. I've done research on the subject and know that building a team is an important aspect of being successful with this strategy.

Does anyone have experience house hacking in San Diego? What were some pit falls you found along the way? What were the successes? I'm looking to get in touch with a real estate agent who can help me throughout this journey. Also, if anyone knows of any private lenders or has any success experience with seller financing I'd love to know. I'm definitely going to need to creatively finance the property, at least at first, and then REFI the property when the time is right.

Any guidance or references will be greatly appreciated.

Jake Andronico · Answer

@Dane Lopez I can second @Keith Mintz's rent by the room strategy. I've done this twice and it's a great balance of higher cash flow but less headache than an STR in my opinionAlthough, in the right area and run properly they can crush. Just have to understand an STR is like running a very small hotel, and a LTR or renting by the room has completely different dynamics.

Keith Mintz · Answer

I have experience house hacking but in Sacramento. I am now also doing it in San Diego. I love house hacking & am a licensed agent who specialize in Co-living/house hacking & STR. Whether you're looking for multi family or a single family home, get something with the most bedrooms and opportunity to add bedrooms down the road. I like renting by the bedroom for max ROI. Also maybe considering putting one of the rooms or a unit on STR you will typically increase income by 50-100% than a typical LTR. We manage 100+ str, these numbers are from experience. Also the price obviously matters, I like to find something that can completely coverage expenses ideally, and a location that is developing and attractive for STR if you take that route. Something like Claremont, normal heights, Logan heights, city heights, university heights...etc. Areas not far from downtown and PB will do good for STR and Co-living. Feel free to reach out!

Dane Lopez · Answer

Thanks Benjamin!

Benjamin Sulka · Answer

Best of luck to you, Dane!

Dane Lopez · Answer

I'm thinking to connect with them for the house hack but also for the future. I know that private lending probably doesn't make 100% sense if I'm going to be living in one of the units, but I'm exploring all my options for creative financing (if the numbers make sense of course) because I don't think that I would qualify for traditional-occupant financing. I'm hoping seller financing can be a clever way to get my foot in the door!Appreciate the reply!

Benjamin Sulka · Answer

Dane, Welcome to BiggerPockets!Question. Are you looking to connect with a private lender for the house hack? Or just to have them in your network for the future? House hacks obviously bring in less income because you are occupying one of the rentable units. Using private money comes with higher interest rates which may make this less viable. I know you said your goal was to refi but why not start with traditional owner-occupant financing? Seller financing would definitely be a great option though. Best of luck house hacking!

Kenneth Donaghy · Answer

@Dane Lopez Househacking is a great option to get started in SD, I have many clients purchase househack properties. Anything from rent-by-the-room to multi-unit properties, to ADU plays. Happy to have a more detail conversation about your situation. Some of the pitfalls I've seen, is having unrealistic expectations, and not doing proper due diligence on larger older properties. Even those can turn into successes. I have had many clients purchase multiple properties with my assistance.

Kenny Simpson · Answer

@Dane Lopez nice to meet you and YES lots of my clients have done house hacks and I have been in the real estate game in SD for 20 years. We should jump on a call so I can help answer questions and understand more about your goals. I sent you a DM

Robert Comstock · Answer

What is your pain threshold? If its high, look for the property that allows you the most rentable spaces/units in a demographically acceptable area (Since you will be living with them) and perhaps has some non-rentable bonus space that you can live in yourself....Ie a garage or office space. The more your willing to forgo comfort the more opportunities you may have.

Nate Meeker · Answer

@Dane Lopez - Welcome! I've personally house hacked and done seller-financing recently in Temecula, Hemet, and Pensacola, Florida. I'm an agent in Temecula and source similar deals for investors and primary owners. Let me know if you ever want to talk - they go fast an typically don't hit the market.