All Forum Posts by: Account Closed

If  I had that money and was looking to invest in buy and hold real estate here in SD my focus would be on multifamily then single family.  For 500,000 you should be able to make almost anything work with 300,000 down.  My focus would be good rent demand in good working class neighborhoods.  Go to neighborhood scout . com for some help with that. Watch the rental market to see what properties sit and which rent out for top dollar in what neighborhoods. I would knock doors and make phone calls on current rentals in the area.  If you purchase in an area with good schools and good rental demand in SD  you will do great. Purchase in areas that you wouldn't mind  living in yourself and take great care of the property and the tenants. Read Lots of books on multifamily vs. single family! many are recommended here on BP.  Feel free to reach out with any questions on the SD market. Best of luck!

would more be a reposition and increase rents then complete gut. long term 4 plex with no PMI and 100% financing can't beet it. FHA you can have a duplex and fix it but long term the 4 plex may be more profitable. I would look at all your options I just favor the VA 4 plex if your gonna live there as it should cash flow more. Best of luck

@Justin Hansen If you can find a person that will lend on a fourplex FHA 3.5% down let me know!!!!! I am not 100% as I am not a veteran or a lender but I believe you qualify for a 2-4 unit building with a VA loan. You should be able to live for free and manage the other unites while you are active duty in SA. If you can refinance every 6 months or year you could move and do it again and again out there. Sounds like a great plan. best of luck

@Mark Scheffler Welcome. Although not with the VA loan I've done house hacking myself. House hacking a multi family with 100% financing is incredibly tough right now but not impossible. Better chance with a 4 plex than a duplex. Just may take a while and some real aggressive marketing by you to get the job done to find that off market deal. Once it is on the MLS it is hard to make the numbers work. Most multi family in the SD area will be cash flow negative with 100% financing if you move out of the property in the next 10 years. However if your plan is to live in it a while, it is a great way to keep the payment down gain real estate experience and build equity. I love my multi family properties and wish I would have bought a 4 plex as my first home in SD. Message me if you would like access to available properties or have any further questions. best of luck

That is my goal to 1031 my SD rental property into an apartment building out of state. I started with duplexes out of state and now want to 1031 my SD rental property. How involved do you want to be?  Me personally I do not want to be a property manager full time. Do you have a primary home in SD? Maybe you can move into a new primary in order to acquire SD real estate as well?  In the current SD market I would probably only buy a primary residence that I thought I would live in for some time. Although sounding easy to purchase and manage a property out of state, it is harder than it sounds.  The most important thing will to be to build your team of managers, brokers, lawyers, cpa's you can trust and count on before ever making any offers. Be prepared to do your due diligence and knock doors,make phone calls, and sleep in airports. This dosn't happen over night, and if you are doing a 1031 you better be darn sure you are getting a bigger/better property. I get a lot more cash flow in other markets as we are 5% from peak prices, and not a lot of appreciation gains left as affordability is becoming a question. Keep moving into new primary houses in SD is one of my plans and then 1031 the equity into cash flow in or out of town! The waves are bigger in SD however I think we are starting to fizzle into white wash and not everyone has a big enough board to surf!

you should invent something, own businesses , or invest in other asset classes such as real estate if you want to be wealthy. This question is better suited for deep down inside yourself and for you to follow your soul.  For some people their passion is money, but remember. Life is a lease , negotiate well! Best of luck!

fixer upper duplexes with FHA financing. Tough find... lots of research needed on multifamily. best of luck

@Lance Robinson thank you. This was her choice brand new 4 plex cash. @David Keys nothing has been sold. she would only sell if she had another property or properties under contract.  At this time I do not believe she will be selling and she has decided that down sizing is something of a possibility. thank you

looking for cash flow it will be incredibly tough to find in this market unless you are in some areas that are not desired by most. You will need a very large down payment or live in the duplex when you first acquire the property. Keep an eye on foreclosures, probates, divorces and look into out of state owners.  You may get lucky!!!!  Make sure you look into the crime rates and drive the streets at night and day.  You will notice a lot more people walking the streets during the day in areas mentioned probably because the people don't have jobs. If you have the money and are looking for long term rental , I would buy in the burbs with better clients/tenants such as Santee which is expanding like crazy. Try and buy  in places you wouldn't mind living with good school ratings and you should be fine if you cash flow it with bigger pockets numbers.best of luck

one other trend that you will notice in SD is if a Hip new brewery is coming in, the town starts to revitalize around it.  Santee just so happens to be one! Imperial beach had a huge article in the paper on how a very nice brewery is going right on the strip with a famous guy that own a bunch of restaurants in L.A. It may happen for them too! but right now it is a rough city.

It works! For 5,000.00 I will tell you the secret lol... j/k... It only Forces discipline and prepayment! Other than that the savings is minimal and your property should be on a long term note if possible at today's rates. Don't pay off your note, this is not wise for many reasons. Instead buy rental property producing more income. This method only works if you use it in conjunction with timing of bills and credit cards. Lots of hassle for 20$ a year but my trip to hawaii every 3 years from the credit card bonus points maybe worth it. Much safer and wiser to keep a savings account in case they call the note and ask the 2008 folks how that went. best of luck