All Forum Posts by: Account Closed

Hi, my name is Justin. I live in the San Diego Area and my family and I are looking to finally jump into some investment real estate. I am trying to ingest as much info and education that I can and figured I would ask this question here…

Goals: To have a supplemental income when I retire in 8 years and enough knowledge and capital to try to pursue real estate investing full time in retirement.

We have about $400,000 available to us in equity in our home if we did a heloc but with interest rates going up, it seems way more risky to go that route. We have about $20k that we feel comfortable putting down on a down payment which means we will be investing out of state. We have family in the Wichita, KS area which helps because we travel there every few years and our family has good area familiarity that we dont have. I have found a few duplexes for right around $100k which would be great for our down payment and we could absorb the entirety of the payment if we had issues renting it for a period of time. The problem is, at that price point, the properties are in areas that have higher crime and are labeled as “bad areas” to live. Single family homes are available in better areas of the city but would bring in less cash flow. I would like to do this model every few years and hopefully have 3-4 properties within the 8 year time-frame goal of retirement and then move onto bigger and better properties.

Any thoughts? Thanks in advance!

Remember that cashflow looks great on paper. But when you invest in C/D areas it will most likely be a more risky investment that is harder to manage. More turn around and headaches. The nice area with less cashflow is more stable. Less headaches, less turn around. The numbers never tell you that part. Don't always chase the cashflow. Especially if your looking for ease of ownership.

like @Conner Olsen said. In 8years the single family will be cashflowing nicely, maybe better than the duplex.

100% agree. You will have lots of headaches with C properties. Also, 20k is what I would keep in reserve just in case you have an eviction, repairs, etc.

1 Vote

San Diego, California

@Doris Jin Huang would love to chat offline!

0 Votes

@Arjun S.. Thanks for the update. I have reached out to you. Would love to chat your experience.

0 Votes

Depending on the updated Albemarle county homestay rules (I haven't checked them recently) and its location in proximity to the vineyards and wedding venues, you may want to look into an STR for the top level.

1 Vote

Richmond, Virginia

@Stacy Weng I think you would be hard pressed to find a landlord who will let you arbitrage their property. I know I wouldn’t let someone sublet my LTRs for short term rentals. I presume the rewards would have to be quite high for the landlord. What happens when you sign a lease and furnish the place beautifully and can’t get it rented. You will still be on the hook for the rent every month. I know people do it and have been successful, but it would be too much lost sleep for me.

0 Votes

@Michael H. Cook good to know! My partner just purchased one that is going okay. Not as well as we had hoped (since our next property will be with them). There just seems to be so many to choose from so competition is fierce. I guess there is some good to regulations!

0 Votes

@Stacy Weng Charlottesville and albemarle is difficult for STR. In Cville you must reside on the property for 180 days. Not sure how so many people have multiple residences and are able to Airbnb more than one. Must be skirting the system, but I imagine it will catch up eventually. We are also looking in other areas like Nelson, which is more STR friendly, but seems like it is becoming saturated. I wouldn't be surprised if regulations begin to change there as well.

1 Vote

@Chris Clothier great list! Thanks!

1 Vote

All Forum Posts by: Account Closed

Account Closed has started 3 posts and replied 57 times.

Post: Are these quotes for new HVAC high or on par with current pricing

Post: Turnkey in Indianapolis through RTR case study

Post: First time investor wanting to make the jump

Post: Turnkey in Indianapolis through RTR case study

Post: Rent to Retirement experience

Post: Owner Financing and House Hacking

Post: Details on Charlottesville market?

Post: Details on Charlottesville market?

Post: Details on Charlottesville market?

Post: Turnkey Companies to Use?