All Forum Posts by: Emy Bernardo

@Robert Leitner    Check out this video from Ken McElroy's CPA for a place to start.   I know the s-corp is ideal for the self-employed to avoid paying both sides of the employment tax, but I haven't heard about it as much for owning rental properties (passive income).  I would love to hear what you end up doing - please keep us posted. 

You need to go there and see for yourself.  We had a duplex near the medical center that we sold back in 2018.  After a string of horrible property managers and a 20% increase in property taxes over one year (and they were already extremely high), we 1031'ed out of there. Whatever you do, make sure you find a really good property manager.   Crunch your numbers using conservative property tax estimates based on the new assessed value too.  The property taxes in San Antonio are some of the highest in the country. https://taxfoundation.org/prop...

@Matt Toeneboehn - STR is 29 days or less so anything over that term would not need the permit. If you are open to other cities in SD County outside of San Diego city limits, you would have an easier time w/ the STR. I have some clients looking in Oceanside, CA which is close to Camp Pendleton and is very loose in the STR regulations.

@Matt Toeneboehn    While it's doable to find a duplex under $800k, most likely it's going to be in a more urban area and/or need some TLC and may not have square footage beds/baths you desire.   I did a quick search for duplexes under $800k and only found 7 currently on the market. There are more opportunities for a SFH w/ ADU under $800k but at that price point, most likely the property will need a little bit of work, so factor in saving some of your capital for repairs. $900k is probably a more realistic price point for something more turn-key with the square footage you need for your family. If you are doing a low down or zero down, estimate the PITI around $4500, for example, most likely you could break even at minimum in 1-2 years if you had to rent it out ( say $3k for the house and $1500 for the studio/ADU). Rents keep going up! Keep in mind that California is as very tenant friendly state and recently passed statewide rent control/just cause eviction laws. SFHs are exempt; however, non-owner occupied duplexes are not. More details here.  If there is anything I can do to help in your search, feel free to reach out.

@Zeona McIntyre said about using a turn-key provider.  This is how I first got my feet wet with investing.  It's much easier for long distance because your "team" will be already set up for you .   The price is set for the purchase and you don't need your own real estate agent. It makes it easy to run the numbers and do a solid analysis before you make the purchase.  You will need to get pre-approved through one of their preferred lenders and be on a waiting list.  I've had good experience with Real Worth Network.  https://realwealth.com/ You can talk to an investment advisor (no cost or obligation) and they can suggest different markets based on your investing goals, price point, etc.  I know there are markets such as Indianapolis, Ohio, Alabama, where you could find something under $150k.   Good luck!! 

@Chris Gawlik I do believe that there is an impending financial crisis on the horizon; however, just trying to understand the rationale for liquidating your real estate assets, in particular, your primary residence.  I'm not criticizing or necessarily disagreeing, just curious what you are going to do with the cash? As real estate investors, we obviously believe in real estate for it's many advantages over stocks and other investments, due to it's stability, ability to leverage debt, tax advantages, etc.. etc.. Are you piling up the cash so that you are ready to take advantage of the fire sale when the housing markets crash? Maybe you are anticipating the the credit markets shut down so the only buyers are cash buyers? But if you sell your primary residence, you are now a renter,  and not able to take advantage of inflation wearing down your mortgage debt exponentially?  

Part of me wants to sell everything and buy an off-grid property somewhere in northern Idaho but I honestly can't think of any better investment than cash flow generating real estate, even in a financial crisis where typically more people end up being renters and everyone is going to need a roof over their head.. But,maybe I'm missing something?

We sold our duplex in San Antonio a few years ago - the property taxes were insane.  Make sure you run the numbers with a conservative estimate of the taxes using the current sale price.  Can be a real cash flow killer.. We complain about California taxes but Prop 13 is actually a huge saving grace, especially compared to areas that are rapidly appreciating. Not having a cap on the annual tax increase is a big issue.  Not sure if things have changed since we sold in 2018, though.  I always say, if they get rid of prop 13 here, I'm selling everything.  The powers that be are trying to get rid of prop 13 and aren't going to give it up! Sorry, that was a bit of a tangent.. :)

@Robert Comstock  Check with your local Planning department depending on where the property is located.  Here are links for more info on SB 9 in SD County and SD City.
City of San Diego - https://www.sandiego.gov/plann...  

County of San Diego: - https://www.sandiegocounty.gov... 

If you need references for an architect or contractor, feel free to contact me. 

I second the recommendation for the Long Distance Investing Book.  I have read several of the Bigger Pockets books and they have been really helpful.   If you aren't sure where to start, you might consider a "turn key" investment property.  I've bought a couple in the mid-west and so far, so good.  It's about as passive as you can get for real estate investing long distance. We've personally used Real Worth Network.   https://realwealth.com/   Lot's of good resources and education and free to sign up.  Also, I like to listen to Jason Hartman's podcast and he has an investment group that works with turn key properties as well.  Haven't used him personally but might be worth checking out..https://www.jasonhartman.com/ 

Hi Maddy - sounds like you have a good mindset for investing and this is the best way to start out as a first time buyer! There are some great first time buyer programs unique to California and depending your income, you may even qualify for a ADU grant. https://www.calhfa.ca.gov/home... I live next to University City and it's a great area near UCSD that would be ideal for renting rooms, but the median price is 1.3 million for single family and not an area that has many duplexes. I often see duplexes for sale in my neighborhood (Clairemont/Bay Ho -92117) but they usually sell for at least 900k or more. If you like this area - you could look at a condo. For a SFH, go a little further east - say La Mesa, Santee, Lakeside, where the price point for single family is lower. You may be able to find a little fixer with a detached garage that could be a converted to an ADU.