All Forum Posts by: Dan H.

I agree with @Stuart Birdsong but want to add that no amount of coaching can answer much of what you will encounter.  It is because most property investments have something unique to that investment. 

So my view is there is so much to learn from Bigger Pockets and other sites that you can target to your specific situation. Meetup has maybe a dozen meetup groups in San Diego related to REI of which you could meet other investors and other real estate pros and learn.

If it is not already covered on Bigger Pockets or other sites you could ask for help on Bigger Pockets or a REI Meetup group that you feel comfortable with (with a dozen SAn Diego REI Meetups to choose from one is likely to be a good match for you).

So I would save your money because I believe there are so many sources of REI learning that are free. I know for me there is so much available to learn that I do not have the time to make use of all the great information available. Why pay for addition information when so much is available for free?

BTW I am not afraid to still invest in San Diego (Even though my last purchase was last year - I have made competitive offers twice this year on separate quads) if the cash flow is OK.  What I experienced during the housing crisis was the rents did not fall nearly as much as the home prices (My total rent decline was $50/month).  If you are in long then I believe all will work out and regardless you have the mortgage covered with the rent (assuming any downturn is similar and does not heavily effect the rents).

Most of my units are in Escondido.  In Escondido the amount of cash flow to be expected is related to the amount of work the units will require.  Units that have all maintenance done and look nice and should take minimal time will have worse cash flow than units that have a lot of deferred maintenance and likely require more time commitment if self managed.

My average cash flow without including maintenance and vacancies is $471/unit.  The ones that have best cash flow typically have higher maintenance costs.  The last units I bought, which were in very good shape, have cash flow not including maintenance and vacancies of $304/unit (2 units so $608 total and so far no vacancy and low maintenance costs - Purchased Nov 2014).

Closer to downtown San Diego is more difficult to get good cash flow. I have a SFR in Claremont with good cash flow mostly because LTV is high (I owe less than 50% of value which I do not recommend - It is this way in part due to time constraints and in part that it is not super easy to get ELOC on rentals). So this unit does not work for what should be expected (unless you want a LTV greater than 50%). I think if you are close to downtown San Diego and can get positive cash flow from a maintained unit (one that will not require lots of time) you are doing pretty good.

As indicated our property is 2 blocks north of Belmont Park/coaster.  So same area you are looking but there are party street and quieter streets.  Jamaica Court is a party street and I think it is because of the MB Ghetto.

Even the older people that rent often come to MB to party hard.  Virtually all our vacation renters are over 25.

Unless you are beach/bay front it is tough to be a vacation rental year round in MB.  We have tried it a couple of times and made less than having a tenant in during the school year and vacation rental during summer break.   We are 1.5 blocks (maybe 150')  from ocean front.

 Mission Beach has significant party areas.  This I know from first hand experience.  We (my family) have a Duplex on Jamaica Court (2 blocks north of the coaster).  We rent long term in the school year and vacation rental in the Summer.  I have not stayed over night at our place in years because of the type of area it is in (Party all the time) even at the expense of renting out someone else's unit in Leucadia (quiet and beautiful).  The unit next door to us in MB is referred to as the MB Ghetto not because it is in disrepair or cheap but because of the number of units on the property (I think there are 8 units).  The MB Ghetto regularly has party issues.  We lost a tenant because he got decked by a tenant from the MB Ghetto.  We have also experienced first hand from our tenants the party issues.  Our little yard was once made into a mud wrestling pit so the girls could wrestle in the mud.   So before closing a purchase in MB I recommend you visit at least twice on Friday and Saturday night.  Make sure you like the atmosphere of the area that you are looking to purchase.

I have not invested in property in any foreign country.  I did once consider investing in Croatia but did not (it would have been a great investment as it was less than a decade after the war (I think it was 2001) and the prices were very good).  So these are my opinions that were not learned by having invested in Mexico or any other foreign country but are based on my travels in Baja (and Belize).

I would only consider investing in a rental in Mexico if I had a trusted property manager there.   It would be too hard to manage from a far.  Even with a trusted property manager Mexico has some unique issues.  Bribes are somewhat standard business practice in Mexico.  Poverty is almost everywhere.  You can be in a tourist town that has a nice downtown but go to the outskirts of the town and it will be third world.  I believe foreigners are only allowed to lease property (long term lease) and not out right own the property.  The currency can fluctuate greatly affecting the value of a property.  For example a property could go up in value (worth more pesos) but be worth less in US dollars due to currency fluctuations.  The peso has devalued significantly in the past.

Belize is different.  It has many expatriates running many of the tourist places.   Its currency value is tied to the US dollar (at least it was when I was there: $1 USD = $2 BD).   I would still desire a trusted property manager but I would expect it to be much easier to find one in Belize than Mexico.  I also find Belize to be nicer than Mexico.  You can go to nice vacation spots in Mexico but there will be poverty near by.  I suspect Belize City, in its most impoverished neighborhood, would not be as impoverished as many locals in Mexico.  I have traveled quite a bit in Baja Mexico (never been to mainland Mexico) and I have been to virtually all areas of Belize.  I like visiting Baja but I would rather invest in property almost anywhere else (including the US).

Of course Baja Mexico is much easier to get to from San Diego than Belize :=).

 This is exactly the type of info I was looking for.  thanks

Not all the work is visible.  The utility company added a drop.  The contractor replaced the electrical panel and ran lines into the house for a kitchen remodel/upgrade and an HVAC.  The electrical runs are fished through walls. 

The work on the second unit is all visible as they raised the drop location into the unit because the old drop height no longer met minimum requirements (I assume it met the requirements when unit was built) and the utility company required us to take care of the drop location for them to drop the extra utility line to the property (one property but 2 units).

I really want the contractor to finish the permit process so that I do not need to do the work he should have completed (I do not have the time) but if I am going to do the work he should have completed (i.e. dealing with the city to try to get the permit without the contractor present) I want to submit complaints to BBB, the entity that issues his electrical license, Angies List, Yelp, etc.  I have no idea how to complain to the entity that provides the contractor the electrical license.

Thanks

Thanks

The wife did this and the city wanted the person that did the work to be present.  This was communicated to the contractor and he initially indicated that it would not be a problem but as time has elapsed the contractor no longer wants to deal with it.  Of course he may feel differently if he had not already received full payment.

We hired a local electrical contractor to do electrical work at one of our properties (2 units).  He charged us for a permit as well as the work performed.

He finished all the work and received the complete payment but did not finish out the permit.  We probably should have withheld the money for the permit but at that time we had no issues with the contractor.  Iif it were not for the issue with the permit I would have recommended him (the work was performed per schedule and per invoice (except the permit), and has had no issues and looks like it should).

We called him and initially he indicated that he would work it but never did.  Each time we called it was the same, that he was sorry and that he would get right on it.  Then he stopped answering our calls.  The wife recently delegated the task to me and I left 2 friendly messages for him to call me back and did not receive a call back.  I then left a message indicating if I did not receive a call back by Monday that I would take further actions.

I know that I can submit a complain with BBB and leave negative feedback with feedback sites like Yelp, Angies List, etc.   I can file suit at Small Claims court but really do not have the time.  But I think there is something I should be able to do because he is a licensed contractor and has not completed the task.  This is where I am weak on my options.

BTW: The contract was for $2500 of which $300 explicitly states on the invoice is for the permit(s).

Therefore I am looking for suggestions as well as information as to how to make a complaint against his electrical license.

Thanks