All Forum Posts by: Jordan Graham

I recently parked my RV on my property in La Mesa and have been renting it out on Airbnb for the last few months. Before going this route, I did a lot of research on other Airbnb's in La Mesa and discovered there are 4 other listings that have hundreds of reviews, which means they have been renting out their trailers on the website for years.

Everything was going smooth until a compliance officer from the city knocked on our door and told us we are not allowed to have anyone in it and we need to bring in the awning/ slider and disconnect from the utilities. Going into this, I knew it was a bit of a grey area because there is very little information regarding what you can and cannot do with RV's on your property. We recently received a letter from the city stating that we have 14 days to bring the slider in and unplug utilities.

I reached out to the compliance officer via e-mail stating that we are aware of other Airbnb's in the city doing exactly what we are and wondering why we have to shut down our operation and others are allowed to still operate. She replied and told me that "Code Compliance for the City of La Mesa is solely complaint based... RVs are not allowed for dwelling and should not be occupied beyond what is prescribed in the code."

So the code doesn't exist unless someone complains?

1.) I have an idea of which neighbor might have complained but we have gone the extra mile to make sure there is privacy and that guests are quiet and do not play loud music or party. All of the guests we have had have been very respectful/ clean and I wouldn't even know that they are there if I didn't know they had booked the space (I live on the property and my bedroom window is near the RV so I would have heard any disturbances.)

2.) How can they only enforce a code based on complaints? My take is that a policy is a policy and either everyone has to follow the code or no one does, it can't just be enforced on some.

That being said, we are trying to figure out the best path forward. Our plan before the city came to our door was to rent it out to one long term tenant so we don't have the constant turnover but now we are a bit apprehensive based on the letter.

What can a city do to enforce these codes, what are the chances they give us a fine if we continue renting it out, and how much are fines? 

We believe that we won't receive any more complaints from neighbors based on some extra measures we have taken to add privacy to the RV and don't think the city will be driving by and checking on us but there is no way to be sure.

Cool, sent you a message yesterday with info.

Congrats on the move! You'll love it here. I am currently house hacking in La Mesa (Lake murray) and have greatly been able to reduce my living expenses. I'll send you the investment spreadsheet I use to analyze deals.

I agree, no one knows how long this will last but I think it's safe to say it will continue through the rest of the year and the beginning of 2023... depending on what the Fed does.

North Park used to be pretty sketchy 10-20 years ago but it has undergone a major facelift and it is very desirable to a lot of people now. If you go a little bit farther east (past the 805) it becomes less desirable pretty quickly.

What would be your reason for bigger lots? Are you looking to build something like an ADU or do you just like the idea of more space for you and your family? Poway is beautiful and more family oriented but is definitely not urban at all.

I think Mission Hills/ Banker Hill sounds like a perfect fit for you and what you're looking for based on safety and still getting the urban vibe.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $730,000
Cash invested: $18,000

I am a big fan of single family detached properties in expensive markets like San Diego because of the flexibility of options. For this property, I added a driveway with utilities and now have my camper parked on it, which I rent out to a tenant. The mortgage is $3,800 a month and I bring in $5,900 a month by renting by the room and also renting out the camper. This value add option would not have been possible on a condo/ townhome and I would be negative cash flow every month.

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

The large lot and affordable price compared to other neighborhoods in San Diego.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $730,000
Cash invested: $18,000

I am a big fan of single family detached properties in expensive markets like San Diego because of the flexibility of options. For this property, I added a driveway with utilities and now have my camper parked on it, which I rent out to a tenant. The mortgage is $3,800 a month and I bring in $5,900 a month by renting by the room and also renting out the camper. This value add option would not have been possible on a condo/ townhome and I would be negative cash flow every month.

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

The large lot and affordable price compared to other neighborhoods in San Diego.

Like others said, it depends on how long you intend to live here. San Diego is a very desirable city that has very little land left for development unless you go east, which creates a promising future for investors and owners.

That being said, I think it's important to diversify in to multiple markets over the long term. You are also moving here at a very ideal time and think that it's a great opportunity to pick up some great deals. I work with many flippers and we are negotiating crazy price reductions already and I think the next year will continue in this direction. I say get your cash ready to scoop up some discounted properties!

If considering the multi-family route, I like North Park/ Normal Heights. They are not in the Class A quality, but North Park is one of the most desirable parts of town.

Hi Lisette,

May I ask what your goal is with investing? Are you more interested in cash flow or appreciation at this point in your life? 

Like @Dan H. said, the appreciation here is hard to beat. I purchased a house hack in October of 2021 and using the above math, have made $19,333/ month. That being said, take that number with a grain of salt because of the crazy market we have been in. That type of appreciation is not what you should expect but high appreciation markets are the ones where real wealth is made.

I am in the process of looking for a 2-4 unit in SD as my next house hack but it is very difficult to make the numbers work with multi-family here. I do think that will change in the next year or so with the shifting market so I think there are some great opportunities coming our way.

^^^ I definitely agree with you on that... One of the main issues has been getting financing that doesn't require a refinance (we currently have a 2.99%) and aren't comfortable using a HELOC because permitting and construction times are unpredictable.

Don't underestimate the power of on-market deals for wholesaling... also meeting and cultivating relationships with agents who have access to a lot of off-market deals and tapping into their network.