All Forum Posts by: Aaron K.

It all comes down to evaluating the return that you will get off of the money you take out as a loan, if it works great if it doesn't don't do it.  I think the property that will be getting the work done should also be considered for a refinance if possible.  Hope that helps.

Not sure how it works in the Midwest, but in California an older neighborhood does not necessarily mean a bad neighborhood.  The far more important aspect is location.  Is the property near good paying jobs? parks? areas of interest?  An old home in a great location will beat a brand new home in the middle of nowhere every time out here.

@Monica George Flipping is very competitive in Southern California, getting your agent's license is helpful, but you will have to dig through a ton of listings and invest a lot of time to find a deal that works well. Best advice is to be patient and don't buy a property for the sake of buying a property.  Moreno Valley is a great city and is growing rapidly, you should be able to find something, it just might take a bit of time.

I don't know who may or may not be interested in renting from you, but I would not advise renting to friends or family as it can cause strain in the relationship if they don't pay or if they are upset with how the property is being managed.

@Tony Robinson  If and when you start investing in Southern California I know a great contractor that I can refer you to.

 Great advice.  If you like the property but not the price you can always offer less.  If nobody likes the deal the seller will have to lower the price eventually.  The worst thing they could say is no.

In my experience Mello Roos is the devil and high HOAs are a close second I think you might be on the right track with house hacking, you can find some multifamily properties with 2-3 detached houses on a lot, which gives you the privacy of an SFR with the house hacking ability of multi family. I don't know if there will be a correction in California's future, but if there isn't you might get caught in a cycle of ever rising rents and not come out ahead. Even an SFR with rental potential without Mello Roos and huge HOAs might be a good option. PM if you would like to discuss further.

@Matthew Roberts The La Mesa area is likely going to be more expensive than the IE and offer lower returns but it is all about what you are comfortable with.  Some cities like Temecula have IE prices without as much competition as the rest of the IE.

 You can find some rentals if you are willing to look farther North into the Inland Empire, which is a 1.5 - 2 hour drive from San Diego.

 You make a good point about poor credit but 1. a mortgage on a 40k-100k mobile home would be less than $500 a month over 30 years. 2. Most people do not want poor credit tenants, especially in California where it may take longer to get them out.  Even adding in the fee for the space most people who you would want in a $2000/ month rental will be able to buy.