All Forum Posts by: Daniel Berthiaume

Ok, thank you

Hi everyone,

I recently got a new investor client who is looking for a 5% cash-on-cash return on a property near or around San Diego with a $100,000 down payment. The property can be a SFR or multifamily with no pool, HOA, or Mello Roos. If it's a SFR, must be a 3bd/1.5bth minimum. If there are any investors on Bigger Pockets that are looking to unload a property that fits this criteria, please let me know.

Thank you!

I'm currently in escrow on a property in Ohio. It is a fully rented duplex with an attic conversion that is also being rented out. It has it's own gas meter but it shares electical. 

What kind of risk am I exposing myself to as a landlord? I've heard stories in CA of leases not holding any weight if it is for an unpermitted unit.

Has anybody had any experience with this situation and do you have any advice?

You might be able to get a 203k loan for the rehab so that you wouldn't need cash on hand for the repairs, but you definitely need systems in place if you want to flip and you're not living locally. Good luck with it.

Hi @Judy Ortley

There are definitely some opportunites still available to cash flow in the outer areas of San Diego, such as Oceanside, Vista, Escondido, Chula Vista, and Santee. Also, the multifamily properties in up and coming areas like Normal Heights, Kensington, and North Park also offer some opportunity. 

The key ingredient is making sure to buy the properties right so that if there is a downturn in the market, you're still able to make money.

Please let me know if you'd like to know about specific opportunities. My expertise is North County area, but I just did just sell a multifamily in La Mesa that is a perfect house hacking property for the buyers and there are more properties in that area that would work.

Originally posted by @Tim G.:

Are you talking about homes small enough to not need permits? Sounds fun! Keep me updated.

 The homes are built on a trailer and are mobile. The plan is to put them on a 5-acre lot that has a shared garden and solar power. 

I have a colleague that is creating a tiny home community in San Diego. Each home is roughly $25k and the plan is to put 50 of them on a piece of land currently in escrow. I just thought it was really interesting in such a densely populated area with high home values. Has anyone here had success creating a tiny home community that they would like to share? 

Originally posted by @Sarah D.:

Hello flippers,

I've noticed that a lot of the flips in the area I'm looking at in San Diego (or the ones that appear to be flips) are listed with a price range instead of a fixed price.  Why is that?  To bring in buyers on the lower side who might otherwise pass up the property?

Thanks for your insights,

Sarah

 Yes Sarah, the range pricing is trying to target a bigger range of potential buyers. I'm not a fan of it. If the home is priced right, it should sell. I also have a theory that agents have started doing it because they don't want to be firm with their sellers about the price it should be listed at. Seller wants X, agent thinks it should be priced at Y, so then they decide to do a range of Y-X for the listing price.

Welcome to BP Shane. I'm an agent in Carlsbad and would love to help you out any way that I can. Would love to hear about your investments plans, both locally and in Panama. I've had a few people talk to me recently about their interest in Costa Rica RE and they had some great ideas.

On a side note, do you happen to know Michael Julien? He runs an acupuncture business in Encinitas focused on athletes, and he has a lot of surf clients.

Originally posted by @Bobby Holley:

Originally posted by @Daniel Berthiaume:

Couldn't you just take over payments on the seller's existing loan and set up a second loan directly with the seller?

 I like your thinking.  That sounds logical to me.  Do I retain ownership so that I can fix and flip the house?

 I'm not experienced in this area, but I've only heard from others that you can assume the seller's existing loan, create a second loan between you and the seller for the remainder of the purchase price, and then have the seller transfer title into your name. That way you would have the rights to do what you want to the property. I recommend getting expert advice in the matter though, as I'm not an expert in this type of scenario. Good luck with the transaction.