All Forum Posts by: Casey Murray

@Elaine Hester I agree there's hoops to jump through in order to execute a 1031 exchange but the tax deferred benefits are well worth it. Assuming your bay area property is in good condition, you shouldn't have a problem selling since your market is hot. On the buy side here in San Diego, it's also a seller's market so it's vital to have your property criteria (location, type, condition, etc.) dialed in so you can act fast in buying. One way to mitigate risk is to have an agent with leads for off market properties so you're not competing with multiple buyers. Feel free to contact me with questions and best of luck! 

@Peter McLeod I would look into refinancing the first two properties via pulling equity out or a HELOC to use as capital for your third property. Take advantage of the historically low mortgage rates!

@Ike Ekeh I agree this is a tough question to address and you'll get varying answers. I'm copying @Justin R. and @Dan H. as I've found their information very helpful. If anything else, make sure to be conservative on your numbers, know the market for what you can realistically get in rents and don't force the numbers to make the deal look appealing. Feel free to reach to me and best of luck! 

@Ellis Hammond My experience shows it's harder to find the 1% rule in the coastal areas since properties are priced so high. But when you look at properties going inland (Vista, Escondido, El Cajon, etc.), the rent to purchase price is more realistic as this crazy housing market is driving rents in areas previously overlooked. 

The 1% rule isn't a good standard to go by since you can drive up rents in future years coupled with appreciation. Feel free to contact me with questions and best of luck on your real estate journey!

@Bryce Baker I would highly encourage buying a MF property and using the BRRR strategy given your skill set. This will allow you to scale up in your later years. Hopefully the capital won't be a big issue since your family can "gift" you money to help with the down payment assuming this will be your primary residence. I would recommend going with agents such as @Kevin Fox that work with investors; it's easy when agents speak the same investing language as their clients. Feel free to contact me with questions and best of luck!

@Mia Trasolini May I throw my hat in the ring?! I only work with investors. Feel free to PM me with questions and best of luck on your real estate journey!

@Mia Trasolini It is certainly tough to find cash flowing properties in San Diego but they are possible. I would echo the opinions previously expressed that you have to get creative to make numbers work. I am closing on a fourplex purchased for $525K that generates $5,275 monthly income. The property is legally a duplex but the previous owner converted the garage to a 1BD/1BA unit and built an additional 1BD/1BA unit. I essentially bought a fourplex for duplex prices. I would encourage you to get all of your ducks lined up (financing, property criteria, etc) so you're prepared to pull the trigger on a property as deals go fast in San Diego. Feel free to contact me with questions and best of luck. 

Thank you @Justin R. and @Dan H. for sharing your information.

@Ryan Smith Considering San Diego is near the height of the real estate market, I would buy a 2-4 unit multi family property in your desired area by living in one unit and renting out the other units to help offset your monthly mortgage payment (AKA househack). This also allows you to reap the benefits of what I call the 6 powers of real estate. I would use conventional financing (20% down payment to avoid PMI) or FHA financing (only 3.5% down but you incur PMI until you have 20% equity) to take advantage of low interest rates. If you're going to pay cash, make sure you're getting a screaming deal on the property.

For the cash left over, it's important to know what your long term goals are; are you looking for cash flow, appreciation or both? If it's cash flow, you will find more opportunity outside of California. If it's appreciation, there are properties in San Diego where you can rehab to force the appreciation. I personally am a big fan of multi family properties as it's a great starting point where you can scale up in the future and build your wealth. Feel free to contact me with questions. Best of luck.

@Twana Rasoul Some of the units have been partially updated but one unit needs a lot of work. It's in the National City area.

Agreed, do it online. I did Allied and completed everything in about 5 months. There's no tricks, study and understand the material to pass the test. Good luck.