All Forum Posts by: Account Closed

Hi all, 

I am from San Diego, I am new to real estate investing and am looking to buy my first property. I am looking to buy a multiunit property that cashflows. I am currently looking at a property in Lemon Grove, wondering if anyone has any advice or insight about this area as well as tenants. I would really appreciate any information or if there are any recommendations on other areas in San Diego that investors are investing in and have had success in. 

Thanks,

Jessica

@Dan H. 

Thanks for the feedback! Yes I am verifying that we can in fact build a separate structure. Another option that I was considering was adding an additional bedroom to each unit (possibly a bathroom as well). I am currently trying to do research on what the cost of this would be as well as run comps to figure out the ARV. I am reaching out to some people to see if I can get a rough estimate of the costs. Once I know the costs, estimated rent and ARV......is that all the information I would need to update using the Rental Property Calculator.

Although the cashflow is negative, I am currently paying the about the same amount in rent while living in a 1bed/1ba in mira mesa. So that's why I was wondering to see if I could maybe justify the purchase given that I will be paying the same in rent in the foreseeable future. 

I just wanted to add that if I lived in the second unit, I would househack it by living with my boyfriend and splitting the costs. So our rent payment would be $1082/mo each. 

Should I be accounting the $1082 that my boyfriend will be helping paying as part of the income? Or maybe not? I originally calculated $3000 as the income as each unit would rent for about $1500 if I completely rented both out. 

@Sam Shueh Ahhhh thanks for catching that! I went ahead and updated again. 

@Sam Shueh

Hmmm I checked Zillow and checked the 'Tax History' tab and it said that in 2017 that the property tax was $4326 and the Tax Assessment was $367,097. 

I plugged in $4326 to the Rental Property Calculator. This may be a dumb question, but is this now the correct information for the property tax? 

@Sam Shueh Thanks for the feedback! 

Ok so I updated the report to include the PMI and the property tax. It looks like after the update the cashflow went from -$778 to -$1476.39.

Note: My broker told me that the mortgage payment was $3665 and this already included the MI, taxes and insurance so that would be the total payment already. Since the rental calculator already calculated the P&I and I had already added the property tax ($360.42/mo), I took the some of those and subtracted from $3665 to get the PMI cost.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

I am looking to put an offer on a property in San Diego, in 92102 area code. The property is a duplex, with purchase price of $529k. Each unit has 2bed/2ba. What attracted me to this property is that it is sitting on a 11,144 sq ft lot. Each unit has its own yard but on top of that there is a huge unused lot. My plan was to maybe build more units on the lot later down the line, however I recently found out that based on the zoning I wouldn't be able to build more units on said lot. I spoke to my real estate agent and he mentioned that a law was passed recently in which you can get a permit to build a 1bed/1ba on a lot that meets the required sq ft. The permit alone would cost about $20k and as a baseline I know that there are companies that sell premanufactured 1bed/1ba guest houses for about $50k (~$600/mo if financed). However, not sure if hiring a contractor would be cheaper than buying a premanufactured guest house? If not then I was also thinking of the possibility of purchasing a 'tiny house' and putting it on the lot and living on that while renting out the duplex completely. I have been trying to come up with different exit strategies. 

Please see my link to my calculations, I used the Rental Property Calculator. I would really appreciate some help in analyzing this deal so that I can make a better informed decision on whether to pursue this property or not. Currently one of the units is being rented out for $1500 and the second one is vacant. The average rent for a 2bed/1ba unit in that same area is about $1650. Based on the mortgage payment that my broker helped quote me at it looks like it would be around $3665/mo. If I were to purchase the property I would have to honor the current tenants lease (not sure when that ends), which would mean that my monthly payment would be about $2165 for the second unity. I am currently renting an apartment with my boyfriend in an area closer to work for about $2000.

If I am already paying about the same amount in rent, wondering if it would be worth buying the property even if it means that it is currently not cashflowing. I would really appreciate the feedback! 

I appreciate the response and sorry for the late response I just wanted to take some time to get a little bit more info from my dad. To answer your question there are two parts so

1) back in the day when my dad and uncle wanted to refinance I beilieve it was the lender's prerequisites (I believe Wells Fargo) that required whoever was on the title also had to be on the mortgage 

2) currently we are just trying to get my dad back on the title but trying to figure out the best way to go about it whether quit claim deed or warranty deed or anything else. at the moment no one is telling us that my dad can't be on the title if he isn't on the mortgage.

However, in the future we are hoping to get a credit line or loan against my dad's unit so that we can use that money to invest. My question is  that if the duplex isn't paid off and my uncle is still the only one on the mortgage, would my dad be able to get a credit line/loan against his unit given the fact that he isn't on the mortgage (which is almost paid off)? 

Given what you said though that you've allowed to have people on the title that wasn't on the mortgage makes me think that this depends on the lender who will be providing the credit line/loan and their prerequisites? So maybe we need to go to the lender and get more info from them? 

I also read the following post that has to do with 2 names on a deed and 1 on the mortgage. The post mentions Quit Claim Deed and Warranty Deed. However, I am still not sure which of the two would work best in my family's situation. Hoping to get any advice we can get. 

https://www.biggerpockets.com/forums/51/topics/75277-2-names-on-deed-1-on-mortgage-possible

Hi - 

I am hoping to get some advice for family's situation. My dad and his brother are owners of a duplex. Each live in one of the units. When they bought the duplex my uncle was the only one on the mortgage as my dad couldn't qualify. At some point I believe my uncle added his wife and my parents to the deed. However, my uncle and dad wanted to refinance and in order to do so my dad got asked to remove himself from the deed in order for them to be able to refinance. 

I understand that lenders usually wouldn't allow them to refinance if there are two people on the title and only one on the mortgage because if they did their security instrument would only cover 50% of the property. If they defaulted on the note and the bank foreclosed they would only be able to foreclose on half of the property. 

Currently, my uncle is the only one on the deed and on the mortgage. We are hoping to get my dad back on the deed but also my dad wants to help my brother and I invest and was thinking of getting a credit line or taking out a loan against the property. 

I am wondering: 

1. What would be the best way to get my dad back on the deed so that he could be able to get the credit line/loan against the property? Would this be possible if my dad is not on the mortgage? 

Also, my uncle and dad are very close to paying off the duplex I believe they would be done paying it off later this year. I heard that if you are trying to get a credit line/loan the property can't be paid off as banks don't loan out against properties that are paid off. Wondering if this is true and if there is anything that we can do (maybe refinance?) so that we can continue to have the availability of being able to get a credit line/loan against the property. We are hoping to start investing and we think this would be a useful tool to get us started. 

Thanks in advance for the feedback!