All Forum Posts by: Andrea M.

@Brett Chandler - thanks for reaffirming what others have stated, good to know!

@Thom MacFarlane - appreciate the explanation regarding fees and how loans are sourced thank you!

@Dan H. Thanks Dan, for sharing! It seems for an investor like you with a much more complex credit history and financials a highly responsive lender with deep knowledge and resources would be worth their price. Glad you were able to find such a great lender for your team! For a borrowers like my husband and I with a seemingly simpler situation (looking for primary home not an investment property, no debt except for our current mortgage, excellent credit and low DTI <10%), we were thinking we'd have more options to shop lenders/rates. We are starting to understand the value of competent and responsive lenders who earn their reputation and trust from agents though.

@Rick Albert Thanks for that insight.  We are still learning but are starting to realize the difference between agents who are willing to work with lender of our choosing but who also would let us know if there are concerns with lender, which we would appreciate.... Vs an agent who pushes a specific lender and does not seem to address our concerns or take the time to educate on the issues that you've brought up about the risks of a bad lender.  It just doesn't build trust.

@Thom MacFarlane Thanks, Thom.  I see your point about lender base fees, but does that include origination fees (percent of the loan), is that pretty typical?  I imagine a broker needs to get paid for their services somehow that adds to the cost.  On the other hand there is a large national bank that is out of state that has great rates, low fees but again, seems like it comes down to trust and reputation in the eyes of the agent who see the loan officer as risky to their transaction.  Although they don't come a packaged deal, some agents have made it seem that way, so thank you for your input!

Hi, We are looking to buy a home in San Diego where we currently live.  It is a seller's market (like most parts of the country) and the agents we are vetting have all emphasized how important it is that the agent and lender have a good relationship. The agents have referred us to the lenders they use, however we are still rate shopping and want to minimize closing costs in addition to getting a great rate. These agent-referred lenders are not the least expensive, in fact some of their fees are the highest we've seen.  

Thoughts on lenders who are remote/out of state with better rates vs local brokers with higher fees, and how that may effect the buying process? 

Thanks

Hi BP community of San Diego,

I am looking to renovate a small (and only) ~45 sq ft bathroom and some minor kitchen work in our soon to be first rental! 

Have already screened at least 4 contractors, most were personal references. However, it must be the current boom in home renovations and the opportunities for bigger fish to fry, as I'm having difficulty finding someone responsive. Communication is averaging 2 weeks between messages/contact..is this the norm?   Hoping to get some advice on how to find and vet a good contractor. 

Thanks kindly in advance for any insight. 

Best regards,

Andrea

@Dan H. There's lots to love about OB, but it is changing hence part of the reason we are looking to move. Thanks for the advice! 

Lots of insight and knowledge from everyone here in general to bring back to the table, very much appreciated.

@Joseph Stewart Thanks for those considerations. Our situation allows us to hold/owner occupy if the market timing is not yet ripe for renting out or selling. Might be better considering possible significant cap ex potentially in next few years. Some equity but honestly not feeling savvy enough about REI in general to take it out and leverage elsewhere right now. STR numbers (Airbnb's estimate) looking the same as if we were to rent to long term tenants but that could be wrong.

thanks!

@Matt Devincenzo

Thanks for the insight, had I the foresight a decade ago, would have held out for a property with development potential. Our current home was already been built out by the previous seller/developer, it's technically a condo on paper but a separate stand alone SFR in the physical sense (seller split property into 2 separate homes as new condo community). Seeing lots of development and multiple unit zoning here, with may properties sold for outright cash... given our situation sounds like the general advice is to hold!

@Joseph Stewart

Hi Joseph,

Thanks for the reply, that's a great model you have going there.

Airbnb would be great in the income generation and in some ways the people aspect depending on personality. We're in Ocean Beach, so although there are many short term rentals here, the neighbors/long term residents don't take too well to them.  Also the San Diego city council had voted to limit them last year but it was retracted, not sure how regulations will be in the next few years if any? Not sure if you have the same issues in El Cajon.

Thanks again!

@Dan Heuschele

Thanks so much, Dan for the thoughtful reply -- much food for thought!  

Especially your comment that "people do not invest in investments that are not passive for no return", we may be naive in convincing ourselves that just being able to break even is ok.  I'm finding cap ex to be so difficult to estimate, but a very important point, will consider the high expense items/high wear items around the house and determine their lifespan. 

Appreciate the story regarding your family home turned rental as well. We hadn't thought about selling but perhaps it would still get us to our ultimate goal, if it's viable alternative option in this current market. 

thank you again!

Hi BP community!

There is so much knowledge and passion for real estate on this site! We are hoping you may be willing to share your thoughts and experience about our situation.

We plan to rent our current home and would be landlords for the 1st time.  Have tried several calculators and would like to be conservative. Our eventual goal is to get some cash flow but we are hoping to just "break even" to cover the current mortgage, property taxes and repairs/costs of operating including vacancy periods.  

Some calculators use a 50% expenses rule, is that a reasonable estimate? If so, we would not be able to rent at current market rates.  As this is our 1st venture, we plan to do tenant screening, marketing etc ourselves to keep costs down.

Alternative calculations: vacancy 15% (about 2 months per year), repairs 5%.  We are in the San Diego area, coastal community. Rents are about $2300-$2800 for comparable properties. Mortgage including property taxes are ~ $2200/month.  

Would it even make sense to take the leap? What else might we might have not considered?   (To make it more complex, we would be purchasing our next home with a standard mortgage).

Thank you for your thoughts!