All Forum Posts by: Adam King

 Hello @Enrique Elizondo,

My name is Adam King, and i exclusively work with investors here in San Diego. I help with everything: Fix n flips, LTR, MTR, STR, and even developmental deals.

I am  a life long San Diegan, and I own and manage multiple properties here as well. 

If you are looking for help or guidance, on where to look reach out to me. I would love to help.

Does your company offer DSCR loans for refinancing of investment properties as well?

Hi @Pari Z.

First off, let me say that I love your story. It is very similar to mine, as I used my rental income to replace my income, before jumping into real estate full time.

I have helped multiple people this year, buy their first multifamily here in San Diego. I would love to answer any questions you may have, about how we found the properties, and how we decided the best strategy.

Reach out to me at any time, I am here to help out!

From a tax planning perspective, you are only allowed to start writing off the home once it is placed into service (once the lease starts).

You are also only allowed to write off the depreciation, and any other costs or losses against the earnings from the property.

That is, unless they get the real estate professional status, which requires 750 hours a year working in real estate. Then as a married couple they can write off their losses against their W-2 income. 

The most aggressive way to do this is with a cost segregation study, which lets you rapidly depreciate many parts of the home. I have personally seen this come to 30-50% of the value of the home. In San Diego it tends to be on the lower side, this is because much of the value of our homes is in the structure and land, things that are not going to benefit from the rapid depreciation.

If you would like more elaboration reach out to me at any time!

Investment Info:

Condo buy & hold investment.

Purchase price: $242,500
Cash invested: $24,250

This was my previous primary residence, I have since been able to take a substantial amount of cash out of the home. With my current mortgage + HoA at $1600, and my rent at $2700, I have cash flowed around $1100/month since moving out in January of 22.

What made you interested in investing in this type of deal?

I purchased this property with the intent to house hack, which I did for almost 5 years.

How did you find this deal and how did you negotiate it?

I found the home on Zillow and used an agent to make the purchase

How did you finance this deal?

Conventional loan with 10% down at 4.5%. Then later did a cash out refi at 2.25% which both lowered my payment and netted me almost $50k, which i used to rehab the property.

How did you add value to the deal?

I added value in 2 ways, by remodeling the home, and letting time provide me with rental appreciation, so by the time I was ready to move on, the rents in the neighborhood had gone up substantially.

What was the outcome?

Currently I am cash flowing every month, and since moving out the home has appreciated almost $100k, while my loan has been paid down over $10k

Lessons learned? Challenges?

I learned a lot about being a land lord, as this was my first property that I decided to self manage.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $640,000

This is my primary residence. At the time of purchase, this home appraised at 800k. I was able to use creative financing strategies to get it for 640k with no money down (except for closing costs).

What made you interested in investing in this type of deal?

I wanted to retain as much cash as possible, while still getting into my desired neighborhood

How did you find this deal and how did you negotiate it?

Through door knocking and finding the sellers motivation and pain points

How did you finance this deal?

Conventional Loan at 3%

How did you add value to the deal?

The value I was able to add to this deal, was mortgaging the property to provide all of the cash to the seller. And letting remain in the property until they were ready to leave.

What was the outcome?

I closed on the deal at $640k while the home was valued at $800k. The seller ended up moving out in January of 22 and I move in shortly thereafter.

Lessons learned? Challenges?

The only challenge I faced was explaining how my deal worked to the seller and the loan officer. Other than that there this was a seamless purchase.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Only myself, I negotiated the whole deal. That it what made me decide to end up getting my license, and I have not looked back since.

@Hunter Harmon

First off let me say, incredible job on both saving money and doing your research. What neighborhoods have you been looking in, and what resources are you using for your expected returns?

I will tell you a little about myself. I am a lifelong San Diegan, and I have house hacked multiple properties over the last decade in order to ramp up my profile. I started off renting out my couch to a friend in my first 1 bedroom. Now I am working on adding ADU's to multiple properties. I have done everything in between.

If you have any questions about the process, or best practices, reach out to me at any time. I am here to help! 

The best thing to do would be hire a professional exterminator. Cockroaches are incredibly hard to kill on your own, they can live pretty much anywhere and eat pretty much anything to survive. If you would like to ensure that they are dead dead, and don't return, your best bet is to find a reliable pest control company.

Good evening @Marty Howie,

I have done several BRRR's for myself (currently living in one as I remodel). I have a Client currently in Escrow on their first BRRR as well. I have extensive knowledge on the BRRR methodology and a strong belief in San Diego as a strong market for most Rental avenues. (all of my RE investments are located here)

I work very closely with a lender who does both Hard Money and DSCR loans up to 4m. If you are in need of more money I do have another lender I can connect you with.

There are some hoops you may have to jump through as a foreign investor. One of the best ways is to get an Investor Visa if you intend to invest in multiple properties. It can be a bit of a long process, but I have a partner who is an immigration lawyer that can expedite the process.

If you are not going to go that route, you should expect to need 25-35% down. And the hard money will probably be at an interest rate near 12% though that does fluctuate.

If you have any questions, please reach out to me.

@Orane Jacobs

I have house hacked every home I have ever purchased. This includes renting out my couch in my first 1bedroom condo, to renting out the majority of the house I live in currently. 

Purchasing a home with the intent to house is much different than purchasing a home for yourself. When doing so with the intention of house hacking, it is always worth it. That is because you won't even consider the homes that are bad for this type of living situation.

Depending on purchase price, I cannot guarantee that you will make enough to cover the entirety of the mortgage. What I can say is, as long as we do our research, and make sure the property works for our needs, in the long term you will make money.