All Forum Posts by: Aron D.

I lived in the area for 3-4 years and decided to invest as they have a high concentration of intelligent people in the area.  It is the DoD R&D weapons center.  All of my tenants are mechanical, electrical engineers, or computer scientists that went to great schools.  They make between $65k-$90k per year and pay rent on time.  When they do forget to pay rent on time, my system automatically tacks on late fees which they don’t complain about as it is minor compared to their high incomes(5-8x rent).  I don’t understand why they don’t buy, but most just spend 3-4 years and move back home or another location with more things to do as the location is so remote.

It is probably close to the most affordable place to live in CA with good returns.  Since the Government has printed so many dollars and mortgage rates are so low, it is getting harder to find deals as the QE is inflating all asset values.  I’m just in the buy and hold at the moment, but do plan to offload/1031 when the other markets start to slide.  As others have mentioned, you want to shoot for NW Ridgecrest.

I own a couple of rentals in the area.  Most renters work on the Navy base and rent for a 2/1 could range from $750-$850 depending on condition and area.  Solid cash flow and stable tenant base unless Government lays off federal employees.  It is located 100 miles from everywhere as the base is used for R&D.  I suggest driving and seeing the area before buying just to get a feel for the area.  It is probably 100-110 dry heat right now.  Good luck!

@Jennifer Maiolo I am going to run into this issue as well and researching options to meter separate circuits for energy use and either bill it back or contain a certain not to exceed amount in the lease. I am sure they should work with you unless you have unreasonable tenants.

I personally think that selling is a good option if you are going to another hot market.  San Diego is a long-term appreciation play as the housing shortage is projected out to 2050.  Don't invest in the rust belt or a dying part of America as that is where CA equity goes to die.  I have seen family and relatives that bought in the 70s on both coasts and property has appreciated tremendously due to housing shortage compared to the increasing population growth.  I personally don't want to pay for any freeloaders, but understand that is potentially my tenant base.  San Diego may only have 1.3 million people, but combined with TJ is equivalent to 5 million residents. 

You also have to consider where are the growing demographic groups and where are they moving to?  I see a ton of diversity in San Diego and hear languages from all over the world.  The housing situation is only going to get worse in San Diego, but guess what that will do for demand?  If they vote for rent control in the future, then I will still hold until they realize how it will kill investment in the region.  The only construction I see around San Diego are for new homes priced in the low $600s.  More blue collar workers are leaving due to affordability, but I see more white collar workers moving into the neighborhoods.  

Another thing to consider is what major coastal CA city is the most affordable?  It is definitely not SF or most of coastal LA.  My suggestion is to hold if you can and then cash out refi and buy other rentals if your current rental portfolio can cover the costs.  Interest rates are so low and for every $100k you borrow is going to add another $500 to your payment.    

Thanks for sharing such a motivational story!  It must be such a rush to see those numbers hit the bank account.  6 years is definitely not over night like most gurus want you to think.  Real estate is a long game and hope you have much success in future projects!  

@Brad Penley why not rent it out and buy another property in FL and use the cash flow to pay for your new property. Keep scaling and eventually have a large portfolio that cash flows and is being paid down by the tenants. You should keep a decent reserve for all properties and could even cash out refi if needed.

I am using tenantcloud to manage my rental units and it has been nice having the payments being sent with notices.  I can keep track of leases and everything else associated with each unit.  

San Diego Housing Commission also has procedures and timeline on when notice of increase to tenant and then application to SDHC for request for increase.  Provide comparable rental comps in the area and they let me increase the rent.  It is a more tedious process, but the tenant has been in the unit since 2008 and most likely stay forever since rent is subsidized for them.  

Sounds like you have to stay doing a mailing campaign or going direct to listing agent. The deal may not have had enough commissions to split. I noticed trying to find MFH deals that I need to go direct to listing agent to get honest answers and cut out as many middlemen as possible.

You might want to reach out the Chris Mason or other lenders on this board that are reputable and look for asset based lending where you might have to put 40% down to secure financing.  If I were single and had a good amount liquid, then I would get a multi-family that could cover the debt plus misc expenses with you living in one of the units.