All Forum Posts by: Greg Wadsworth

Hello BP -

I have a three-unit property under contract with a large buildable lot. My plan was to build out 5 new homes, but my circumstances have changed and I prefer to move to another project.

This is a great project for a house hacker, flipper, buy/holder, or developer of new inventory in SD. Collect good triplex rental income while developing the lot for buildout.

I've been looking at this under three separate scenarios:

Scenario A: Teardown and build on RM 1-1 lot. (15,814sf lot supports 5 units)

5 1,800sf units

3bdr/3ba 2-car attached garages

$2.4MM all in for acquisition, lot development, construction.

$3.125MM exit at $625k/unit ($347.22/sf). Pro forma and due diligence available upon request.

Scenario B: Buy/hold

$5,400/mo gross=$64,800/yr x14 GRM - $907,200 theoretical value.

Effective cap rate at purchase = 7

Value at prevailing cap of 4%, (at $47,620 NOI) = $1.19MM

Will require some rehab.

Scenario C: Flip

Purchase: $660k

Rehab: $60k

ARV: $930k

Happy to share analysis and due diligence upon request.

I have this property under contract  right now, closing set for 1/24, but could be extended. Here's the listing:

https://www.redfin.com/CA/San-Diego/7478-Hyatt-St-92111/home/5225746

Thanks for taking a look and considering.

Serious buyers only please. Must be able to close in 7-10 days

Hi Paul - I sent you a PM.

Welcome, Chris!

Would like to learn more.

I have multiple off-market profitable projects here in San Diego - flips, new construction, hybrid - and a veteran construction team with an impeccable track record to execute. Looking for fairly priced gap and/or 1st position project financing, as appropriate. Open to debt or equity arrangements as appropriate.

Please private message me for details.

Very experienced (over 50 projects) San Diego developer - portfolio available upon request.

Purchase: $585k

Rehab $120K

Exit: $875k

Need $200k gap, secured by 2nd DOT behind hard money.

If interested and liquid, please PM me asap. Moving very quickly.

Established San Diego developer needs capital to build out infrastructure pursuant to approved final maps, which must be abandoned by another developer. All three projects are in East County San Diego.

The offer is a 12% preferred return on invested capital, and 25% of profit after final sale. The three developments can be taken down together or separately.

Please reply if interested.

Thanks, @Mark Nolan - 

Looks like you're close by. I would love to hear about your current projects. I'm mostly looking for "bread and butter" SFR flips in eastern SD county at the moment, but am open to anything that makes sense in SD.

Thanks for reaching out. Look forward to meeting you.

Thanks, everybody for the warm reception.

Looking forward to getting to know becoming familiar with the BP community and contributing.

Hi BP - 

I'm new to this community, and would like to introduce myself. My family has been native to coastal California for several generations, and I live in my home town of La Jolla (Bird Rock).

I've been indirectly involved in real estate investing/development for most of my life, although my career paths have crossed into many other areas, including investment banking, entertainment, and several startups and entrepreneurial ventures. With my youngest graduating from high school this month, I've got time now to focus on real estate opportunities here in San Diego.

At this point, I'm primarily interested in SFR or duplex/triplex/fourplex flips in San Diego where I can make 12-25% Cash on Cash ROI. Within 6 quarters or so, I would like to be buying and holding MFRs and mixed-use properties exclusively. Although I'm open to any reasonable financing sources, I do have a network of private capital behind me once I actually get an offer accepted :-)

I have started attending the three major SD REI groups, and am sincerely looking forward to meeting folks, sharing resources, and working deals with the BiggerPockets community.

Please feel free to connect with me for any reason.

Hi Kevin - We have a Airbnb cottage in Bird Rock which has worked out well over the years. Happy to share my experience and compare notes with you. 

I think the neighborhood's tolerance of transient renters is important, as @Dan H. suggests. Mission/South Mission Beach is known for active parties and beach life, so vacation rentals are usually not a problem unless things get really out of hand. There are so many vacation rentals on the boardwalk, I doubt most people know who their neighbors, much less the owners, are anyway. 

Other neighborhoods (especially beach communities heading north like PB) are more sensitive and may actively complain if they suspect an absentee owner. Just drive down Loring and take note of the "Neighborhoods are for Neighbors" signs on the lawns. A lot of this strife has been brewing over the last few several years from high-profile worst-case scenarios in the area, and the local police have developed a system for tagging offending homes. For example, a few years ago MTV filmed "The Real World" all summer at the quiet end of our street in a rented oceanfront house. It was a mess for locals, several of whom became activists.

However, those stories are the outliers, in my experience.  If you're careful screening and the expectations with guests are managed, Airbnb/VRBO can be great ways to enhance your rental income.  Airbnb, in particular, has a fairly useful social validation/screening system which is helpful. For example, we never take first timers, or guests with poor ratings. 

Happy to discuss further.