All Forum Posts by: Andy Eakes

@Troy Jaster If your numbers are correct, then I would say that you got a good deal. I would still get an inspection done just so you know nothing is going on that you cant see right away. Your rehab numbers do seem a little aggressive. An increase in 60k seems high to me if it was only cosmetic and can cost you so little. If the purchase price was potentially 60k less than what it could be worth, I would say there's something more than cosmetic going on. But its hard for me to say without at lest seeing pictures at least.

Good luck!

@David Frandsen Okay thanks! Good to know what the cost is. That would be great if it could cover both. I will try and clarify and give up update on this thread.

But honestly, my strategy is buy and hold. $6k isn't too bad when you consider the long term gain. 

The real advantage to owning single family homes is that they appreciate at a much better rate than other residential properties (duplex, triplex, or fourplex).  But you are correct, if they move out, you are risking a major loss in profit. A good deal is a good deal though. Single family homes attract a different type of renter who may be more inclined to stay longer than a year. Its going to require good property management and the ability to stay true to only renting to good tenants. 

@Amir Hemmat Invest locally. It may be more expensive if you are in San Diego, but that's where the real money is made.

Plus, when you invest locally, it gives you a chance to build relationships. If there was one thing that isn't really covered here that I wish was covered more is building relationships. It has helped me so so much. And I couldn't do that if I simply relied on someone else's connections out of state the whole time. To me, I couldn't help but feel that I was selling myself short initially. When I get some experience with my properties, and I feel that I have good systems, then I will feel more comfortable investing out of state and using boots on the ground to invest in real estate. 

Just an example though! At the end of the day, you should do what feels best to you. Good luck!

@Yusuf Qureshi Yeah it would be smart to ask for a break down of the costs. I wouldn't be super pointed about it, but ask for a break down of costs. Another technique that I try to do is I will get multiple estimates from non-affiliated contractors just to make sure I am getting the best deal. At first you will want to do this, then when you find workers you like, you can develop a relationship with and trust them and rely more solely on them. But if you are just starting out and unsure as to whether or not you are getting ripped off, then I would get second estimates.

Another thing to remember is that when you rely on you contractor to hire professionals for you, you will more than likely have to pay sub-contracting fees. So it will be a little more expensive.  

@David Frandsen Thank you that helps a lot! I heard something about SD waiving ADU permit fees due to the housing crisis. Would that just cover the permit cost for building the ADU? Or could that also cover bringing the garage up to code? Not sure if you can answer that but any info would be great!

You 100% can, but like you said, it won't be easy. There is actually a Bigger Pockets book called investing with no and low money down. I highly recommend. Just start reading and listening to podcasts and webinars. Listen to or read some stories on people who had success doing what you want to do and do that. You don't have to reinvent the wheel. 

Good luck!

@Cynthia Alexandra Sanchez People will always complain about their expensive market and warn people not to invest in them, but to me that is just an excuse for laziness and/or impatience. Why would investing in expensive markets be bad? Sure it's more money to play, but the returns are out of this world. It may take longer, or be more difficult to raise private money, but if you find good deals (and there are plenty), people will want to get involved, and buying one property in an expensive market can potentially make you very wealthy. Just one! I know people who invest out of state and its good and all, but they need dozens of properties or get involved in complicated real estate deals in order to make just a little bit of money. You'll have to ask yourself why you are investing.

For me, I like to keep things simple, I don't need excitement or any thrills in my investing, so building a Rockstar team and investing in properties in my neighborhood that will bring in great rent and appreciate more than most homes in the world makes a lot of sense to me, even if I need to put in a lot of money. That way, I have direct involvement in the neighborhoods where my properties are. Just talking with neighbors, cops, shop owners, and others in the neighborhood goes a long way. I couldn't do that if I was investing out of state. Plus, San Diego has been appreciating at like 15% year over year.

Good luck!

  

That is what a lot of people do. Have you decided whether or not you are going to go for residential (1-4 units) or commercial (5+)? I ask because I know lenders have a hard time lending to a brand new CORP if it is residential for a number of reasons. Because of this, people tend to buy residential properties in their name and then transfer it into a CORP or LLC after closing.

But, if you choose to go the commercial route, I believe you have to have a CORP or LLC in order to make the sale happen. So that could be a good route for you if you want to only use an entity to buy property.

What part of San Diego? I know a pretty good guy! PM me