All Forum Posts by: Bora Moon

Most properties in virtually all large cities have negative cash flow at high LTV. This implies you need to find the exception, put in work, make sacrifices, etc. if you do not desire negative cash flow

If you purchase a 2 unit property and rent one out and rent out spare BRs in the unit you occupy you should be able to avoid negative cash flow. If you can self manage the second unit as an STR, you could have some cash flow. Note managing is work, managing STEs is more work, and managing by the room is also more work.

It takes work or luck to get cash flow in this RE market. But with time, virtually all RE purchases look outstanding.

Good luck

Thanks for the input! I already own a small STR overseas and manage it myself, so I am willing and ready to make the sacrifices, and glad you said that's the way to avoid negative cashflow! I've been looking at the market with two options in mind - 1) small multifamily - which might not appreciate as much? 2) SFH with extra bedrooms - we could rent out 1 or 2 bedrooms, as we only need 2. Might not cash flow as much but expect higher appreciation in the right neighborhood 3) SFH with an ADU - rare find, but have seen more in San Diego market than other places. Also willing to build one myself in a house with a large lot.

0 Votes

San Diego, California

Quote from @Theresa Harris:

So what you are saying is you'd pay $3500 as that is what you currently pay in rent, but the mortgage payments would be another $4500 (assuming this includes property taxes and insurance). Not all places make good rentals and in some cities it is cheaper to rent than to own. Options to reduce payments are a longer term mortgage or higher down payment. Other option is to save 20% and buy a rental in another city where the numbers work.

Thanks for the advice!

0 Votes

San Diego, California

Hi, I want to do house hacking but my job is in San Diego. It's just me and my husband, so we can afford to live in a one bed room and rent out the other rooms, whether it's in the form of attached ADU or multi family house. But the problem is it's so expensive in San Diego that the extra rent does not cover mortgage after my share of rent. For example, I am willing to pay ~3500 in rent but monthly payment turns out to be close to $8000. I am not necessarily looking for cash flow, I want longer term appreciation, but still not sure if it's worth paying more than what I would have renting. There's another area, outside California where I can invest with little cash flow with some appreciation expectation. Should I still do house hacking? Is paying more for mortgage worth it?

1 Vote

San Diego, California

All Forum Posts by: Bora Moon

Bora Moon has started 3 posts and replied 13 times.

Post: I want to househack but San Diego is too expensive... what to do?

Post: I want to househack but San Diego is too expensive... what to do?

Post: I want to househack but San Diego is too expensive... what to do?