All Forum Posts by: Flavius Alecu

Hi all,

Are there any friendly agents in SD North County working with multi family homes? Looking to expand and would love to find someone to work with now and long term.

It's going well! Closing in on the end of the second year. Bumped rent after first year (changed tenants) and am not cashflow negative anymore. Just barely though. Like people here say, as a standalone investment it's not the best and I can imagine if you'd want to spend the time to find better opportunities they will be out there. Personally, I'm happy with my choice.

Good luck!

Thank you all for your replies, it's great to hear the different opinions on this!

That's true, I am paying for my property. But, I am paying $100 while someone else is helping with $3000. I understand there's risks and additional expenses that will add up in the 30 years it takes to own the place, but it still sounds like a good way to go.

Hi all,

First, I just wanted to say thank you to everyone who contributes to this forum. I'm learning tons here and all you fine folk make this a great resource!

Now, I'm curious what people think about (minor) negative cash flow for buy and hold rentals. Everywhere I read about it the consensus seems to be it's an instant no-deal. What about in high appreciation areas with low cap rates like larger SoCal cities? I know there's much better deals to be found with some patience, and that negative cash flow makes the property a liability. But, if you can afford to subsidize the rental income for the foreseeable future and can tolerate repairs, and you have the majority of your PITI being paid by the rent, does it not make it an ok investment anyway due to the loan payment and potential appreciation? On the other hand, it does seem like we're nearing the peak of the appreciation cycle, but even then, if the property can be held for the long term to me this still sounds like a good investment.

Thanks for your reply Michael! May I ask how this was a good deal for you? Was it simply being able to bring the property back up to code? It feels like depending on the amount of work required, it could still end up costing more than it's worth. Are there any recommended ways to check this? Would the regular generic inspections be enough? Hopefully the city has the permits and they match the modifications.

Hi all,

I'm looking at a property where the garage has been turned into a (second) kitchen. The adjacent room has potential to be split off and the whole section could be rented out. Unfortunately this is not something that interests me and if I was to end up with this property, I would either leave the garage as is or undo the kitchen work.

This would be our permanent residence for now, but the goal would be to either rent it out in a few years, or just sell it if/once it has appreciated to some extent.

I have a hard time working this into the valuation of the house. I understand it's a slightly uncommon situation (or maybe not, it might just be my lack of experience), but I was hoping the great community here would share their opinion on this. Is it valuable to have all the work done to have a second kitchen in (or instead of) the garage? Could it end up being problematic in the future if not used, or would the work required to undo it be too significant?

Thank you in advance!