All Forum Posts by: Jake Jaenicke

Great work to you and your team! What area of San Diego is this in? My fiance and I are renovating a SFR with an ADU and plan on adding a JADU. We have no zoning experience, but our goal is to buy SFR or small MF and expand by taking advantage of San Diego's desire to add ADUs and more density to existing lots.

Thank you all for the feedback. We hurried and went with All State, but will likely shop this once we get the unit rented.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $855,000
Cash invested: $66,000

Contributors:
Laura Jayne Williams

Single Family Residence with a 700 SQFT permitted guest house and detached two-car garage. Requires full renovation. The house was built in 1951 and has had the same tenant for the last 40 years. The property sits on a 1/4 acre lot.

What made you interested in investing in this type of deal?

My girlfriend and I had certain criteria that we were looking for, and this house met all of them. We jumped on the house, scheduled a tour, and submitted an offer, all within a day!

How did you find this deal and how did you negotiate it?

We found this deal on Zillow, sent it to our Real Estate Agent, Twana Rasoul (can be found on BP), and toured it the next day. We had an offer written up that night and submitted it the following day after they had their open house. We offered just over asking, all contingencies intact with a 21-day close. The selling point was that we met the Owner as she was leaving and made an impression on her that set our offer apart from the cash offers on the table.

How did you finance this deal?

Traditional financing, 5% down 30-year fixed rate. 5% down was from savings.

How did you add value to the deal?

We are renovating the guest house and turning it into a medium-term rental for travel nurses, converting the two-car garage into a studio and renting that on a medium-term basis, and aesthetically updating the interior of the main house to ultimately rent out as well.

What was the outcome?

We are in the process of renovations, so stay tuned!

Lessons learned? Challenges?

Will update this in future posts.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We did and they absolutely deserve the shoutout. Twana Rasoul with Compass was our real estate agent. Travis Fader with Advantage First lending was our mortgage broker. Twana and Travis, together, were an all-star team.

BP Community,

My girlfriend and I are about to close on an SFR property that has a guest house that we plan on renting on Air Bnb and other sites (short - to - medium-term rental). I am running into issues with homeowners insurance. We will be living in the main 2B/2BA house for now, and renting the guest house.

Does anyone have any insights on how to structure an insurance policy that covers us for both standard homeowners insurance risks, and home-sharing activity risks such as theft, property damage, and personal injury?

Thank you!

 Wesley those are great suggestions thank you. We found a cabinet supplier that was recommended by a friend off of Miramar near Ashley's furniture. I believe it was JD Cabinets. Have you heard of them? I will take a look at the flooring as well. Would you put hardwood in a short or medium term rental?

 Dan thank you for confirming the big box has some good deals, that is helpful. I have a Costco membership so I will make sure to consider them when shopping for flooring. Do you feel LVT is better than laminate in most rental situations? @Bruce Woodruff  noted the engineered wood might also be a good option. I will need to look into the $/SF difference and see if it makes sense.

 Bruce thank you for the suggestion on the flooring and paint, I agree good paint goes a long way. I will definitely look into the big box discounts on appliances (especially those with some cosmetic imperfections). 

Maya we will be doing most of the work ourselves. I work for a large general contractor and either know how to do much of it, or have friends/contacts that can assist as needed.

Hello BP Community!

My girlfriend and I are in escrow on our first property! It is a SFR with a 700 SF guest house and a detached two-car garage. The guest house needs new flooring, entire kitchen, and a fresh coat of paint. We will be turning the two-car garage into a loft-studio with a kitchenette, and eventually updating the main 2b/2ba house that we will live in for now.

My question is for those rehabbing properties to rent in San Diego. I have heard over and over again that big box home stores are not the best bang for your buck. They are convenient but often overpriced. 

I am requesting some material supplier suggestions in the San Diego area for LVT flooring, kitchen appliances, paint, etc. These upgrades will all be mid-grade (not luxury), and rent hardened materials ideally.

Thank you in advance BP community!