All Forum Posts by: Jordan Graham

What's up Lukas, I work with retail clients as well as investors. 

I like to focus on both because finding deals and wholesaling the properties to investors is just a numbers game and is much less emotional than working with a family who is making one of the biggest financial decisions of their lives. Once you get good at analyzing/ finding deals and building a buyers list, it can become like clockwork.

My first wholesale deal fell into my lap when I was living into Colorado and since I have been back in San Diego I have been learning from a friend who has been doing it for years. It is definitely something where you need a mentor/ someone to answer questions because there are a lot of variable and moving parts (mostly when it comes to determining a properties value).

I love your idea of buying a SFH and adding an ADU or two... that is exactly what I'm doing. There is a new lending policy that if you find a home that already has an ADU built, you can use the future predicted rent to help you qualify for a larger loan (similar to buying a 2-4 unit multi-family).

There are a lot of cookie cutter lenders out there that want you to have W-2 income and if you don't fit into their little box, it makes it hard to qualify. My dad is buying a home right now and he is self-employed so I put him in touch with one of my favorite lenders, Ed Personius, who lives in so-cal. He works mostly with business owners and bank statement type of loans.

Shoot me a message if you want me to connect you two.

I live and invest in SD and am not a big fan of townhomes/ condos because of HOA oversight and lack of options.

In a market as expensive as San Diego you really have to find value add opportunities to make the numbers work. That's why I'm a fan of single family homes on larger lots because you have options such as converting a garage or building an additional structure/ ADU.

One massive opportunity I see is finding properties in close proximity to major hospitals to rent out mid-term (30 days+) to travel nurses.

That looks awesome! 

How long did permitting take? What part of town are you in? How much are you renting each unit for?

We bought a 3/2 on a 10,000 sf lot in Lake Murray last October and built a driveway for our RV with utilities that we are renting on Airbnb and now we are contemplating building a studio or 1 bedroom ADU as well to maximize our cash flow. We are wondering if we should put our money into a down payment on another property or build out a $200k ADU instead? What would you do.

I've referred clients to a couple different lenders but they are not all created equal. You should choose a lender based on your goals/ what type of property you are buying/ what your financial situation is.

I tend to recommend most people to Ed Personius who lives in OC. He really thinks out of the box and goes above and beyond for his clients.

I've referred clients to a couple different lenders but they are not all created equal. You should choose a lender based on your goals/ what type of property you are buying/ what your financial situation is.

I tend to recommend most people to Ed Personius who lives in OC. He really thinks out of the box and goes above and beyond for his clients.

It doesn't sound like there is much meat on the bone... I would definitely say move onto the next one. 

I work with a lot of investors in SD and you would need to get this at a huge discount to mitigate the risk of the unknown rehab costs plus the quickly depreciating market. The only houses you should even consider flipping at the moment are ones with very light cosmetic rehabs that can be bought and sold quickly. Also only use the last 1-2 months of comps to get an accurate depiction of ARV at the moment.

That is a great idea! I'll be there.

If anyone has any extra tickets, shoot me a message as I forgot to buy mine in time,

Most properties you come across will not be good deals but it is getting easier and easier to negotiate a purchase price that will turn a bad deal into a good deal. A good tactic is to go after properties that have been sitting for 60+ days because those sellers are more likely to lower their price.

You really have to find active investors/ buyers and see what their requirements are because they change as the market changes. For example only 6 months ago flippers were paying up to 90% of ARV (minus repairs) in hot neighborhoods and now those same investors need to get the same propertyu for 75-77% of ARV in order to mitigate their risk of the unknown market correction.

That being said, I use a rule of thumb ($45-$50 per sf) to determine repair costs but these numbers constantly change depending on cost of material and labor.

Hi Ben,

I am a San Diego investor as well. I purchased my first house hack in La Mesa last October with 5% down... If you have access to the VA I would highly recommend utilizing the 0% down option. I purchased by home for $730k and am renting out the additional rooms which makes it so I am only paying $500 a month for my mortgage currently.

I honestly am not a fan of a lot of the 2-4 unit options here because of the neighborhoods they are located in and a lot of the time the numbers just don't make sense. That being said, I am sure there are still deals to be had.

I prefer the single family option because of all of the flexibility that comes with owning your own land as opposed to a condo or townhome. For instance, we built a driveway with utility hookups that we are going to park an RV on and rent out which will make it so I am almost living for free. We also are in the process of interviewing various ADU companies to built a 1 bedroom which we can rent for around $2,200 a month. When all of that is said and done, we should be looking at around $7,500 in rental income with arounf $4,800 in mortgage payments including the ADU financing. If we had bought a condo we would be limited to what the market rents dictate for that area.

With that being said, it is better to get into the game and buy a condo if that is your only option for the amount you are pre-approved for.

There actually is a new option to use the rental income from a permitted ADU to help you qualify for more by using the predicted future rents of that unit in a SFH.