All Forum Posts by: Derek Willis

@Alex Ko I have a property in San Diego County which I just converted the detached garage into an ADU and the numbers are great. If its a blessing or curse could depend on if it was built with permits or not.

Assuming it was built without permits you can get it permitted but the cost will be higher due to penalties. Also, one thing I learned was it has to have parking setback space for the cars that no longer have a garage. This has been a show stopper for some I have talked to in this area about converting to an ADU. The new state law also no longer requires the home owner to live in main house effectively creating multi family properties on R1 zoning properties.

Assuming it was built with permits it is a blessing. I don't see many options around here for properties to cash flow unless they have ADU potential which is why my wife and I are targeting out of state.

@Aaron K. Do you mean putting a little more down than neccasary such as %50 on 1st purchase or spacing the purchases more? Our goal we set is to have 3 doors by end of 2019 so either a duplex and a single or 3 singles. 

I see you are from Riverside area. Greetings from San Diego.

Really appreciate the feedback. I was looking at some numbers last night and it does make sense to use leverage and the fact that if I do run into issues I will have cash in hand still to deal with it. Thanks

My wife and I are looking to make our first out of state rental investment property and wanted to get opinions with using cash or leverage. We are selling our existing investment home to get the equity out of it since it has horrible ROI. We will have plenty of cash once that is done to be able to use all cash on next purchase and have some leftover but we do want to be aggessive and purchase as many as possible as fast as possible. We were thinking of buying the first home out of state with cash and then once that is up and running and able to see real numbers, refi it to leverage towards second purchase. Our thought behind it is that we can feel out the new market area and as we build new relationships we won't have to worry about mortgage payments if we hit any bumps. Then once those contacts are made we use that home to purchase 2nd with leverage and then continue leveraging to grow quicker. Would love to hear thoughts of others who have done this before. Thanks

Much appreciated. I will start checking out those areas.

How about decent neighborhoods in Columbus for a buy and hold a strategy? I have one investment home in CA with horrible ROI that used to be our primary and it's going on the market so I can grab equity and look out of state. Just barely starting and scoping out different areas to begin. thanks