All Forum Posts by: Beau Graham

Hey guys, I need some recommendations for contractors in the San Diego area who can provide me with some bids on a bedroom & closet remodel. Searched through Yelp and don't trust the reviews entirely. Thanks!

-Beau

@Aaron Mazzrillo No doubt I'm late...I get that. Didn't start making $$$ until this year, so couldn't join. I'm sure they'll be another party down the road that I can crash.

That's why my strategy is buy and hold. Break even or have positive cash flow on a property, then use the depreciation and appreciation to my advantage.

@Mark Mynhier my I am not looking to flip at this time, but would love to pick your brain. I'll email you man.

It seems like it's difficult to get positive cash flow in most of CA, but there are areas. Even with 20% down, my numbers show that I only make about 5-6% a year off that 20% down (Rental income only), so nothing crazy, but still good.

My VA loan is $355k for 30 years at 4.25% and 0% down. And that's with excellent credit. So I'm being pushed out to Rancho Cucamonga which isn't ideal. My book works at UCLA and is not excited about the commute. We'll keep searching for a property that is excellently located and undervalued.

@Mike S.

Thanks for the advise. I'm working with a very thorough agent. I didn't think about a POF. I've only got my pre-approval letter from the lender. Word on the inspector contingency, I'm not en experienced contractor.

Hello fellow BiggerPockets community members. My name is Beau. I'm from northern California, but am currently living and working in southern California, specifically Culver City. I'm a full-time paid firefighter and a Navy veteran.

My real estate goals are to acquire at least one property per calendar year using a buy and hold strategy. I'd like to have positive cash flow, but I understand that California isn't necessarily the best place for that. So, I'd like to obtain properties that I can break even on (Rent = Mortgage + Taxes + Insurance + etc.) and then use the depreciation as write-offs against my income. Then as inflation and property values rise, increase rent and acquire wealth through appreciation.

I began my search this year (2014). I've been looking in Los Angeles County and San Bernardino County. The focus is on single-family detached properties. 3 bedroom, 2 bath minimum. No more than cosmetic repairs/updates. My price range is 250k-350k. I plan on using my VA loan for my first purchase and initially live there.

The specific area that I've been looking in is Rancho Cucamonga. Ideally I'd like to stay more west of there, but those areas are either out of my price range and/or not very attractive.

I've made a few offers on some properties that I thought would be great rentals, have continued appreciation, and be nice depreciation vehicles. But I've been beaten out by all cash buyers and price (bidding wars).

So I come to the Bigger Pockets community humbled, and seeking any advice that more seasoned/experienced members have to offer about what I'm doing wrong/right and/or what I should be doing.

Thanks ahead of time and I look forward to meeting/speaking with all of y'all!

-Beau