All Forum Posts by: James Stout

Welcome, Steven. Happy to answer any questions you might have. Sounds like you're well on your way to doing well in real estate. I'd be curious to know what you do in terms of development. 

Would be interested to learn what kind of deals you're looking for.

@Traver Freeman

 Welcome to San Diego!  I keep my eye on small multifamily properties in San Diego and have seen some good deals.  I think it will become apparent as you're looking that San Diego tends more towards value in property appreciation than immediate cash flow, if you're entering with a smaller down payment.  Sometimes what makes a lot of sense is finding a larger home with an additional "back house" or "alley house."  Front homes with several rooms tend to bring in significant rental income and, if you're willing to live in the smaller unit, you might be able to make some money or save money compared to renting a place for your family.  If you plan to hold the property, you could move into the larger home when you need more space and then rent out back unit for some additional income or help covering the mortgage.  Larger homes can make nice rentals in certain areas because you can often find a group of individuals like students who will tend to look at rents on a per room basis.

Feel free to get in touch if you want more specific information. I've always got my eyes on that market.

Hi @Jolie Winkler,

I'd be happy to try to answer any questions you might have about Palm Springs.  I'm a native and have seen the Valley grow like crazy in the last few years!  My real estate group are Palm Springs locals and involved in real estate from sales to flips and design and construction of new properties.  Palm Springs is getting back to its glory days as a cool destination and modern design is hot right now.

@Jay Hinrichs

 You're right, Eichler developed a majority of his homes in Northern California.  Palm Springs was largely developed by the Alexander Company, which followed a similar model.  We're bringing the original Eichler plans into the 21st Century as new construction on wonderful view lots in Palm Springs.  The first one sold within 4 hours of hitting the market and we've got two more under construction now.  A little different vibe than good ol' Oreygun.

@Karen Margrave Thank you! Yes, they are ground up construction built to the original floor plans which we have licensed.  The building materials are brought into the 21st Century to suit today's preferences, including eco-friendliness and energy efficiency. The original character is preserved with finishes like custom cabinetry for a throwback feel. These homes are seriously cool!

Hi Vincent,

In my experience you want to work with a developer or architect who understands working with municipal building and engineering departments.  This can pay for itself many times over in avoided costs. For example, the consequences of not knowing restrictions on the land upfront or geographical limitations (fire code, permitted use, moving dirt/excavation, etc.) can cost a fortune when it's too late.  A clever builder will essentially pay for him/herself by recognizing potential pitfalls upfront.

Let me know if you need some tips.  You can check out our website to see some pics of quality new builds which have worked out well for us. Might give you some inspiration.

Good luck and have fun!

Ryan,

I'm also in San Diego and I've found that investing for cash flow can be difficult in San Diego County if you don't have a substantial equity portion in the property.  Occasionally I see some good multifamily properties in the city with decent cash flow. Although the price tags are high, the rental income is also high and I believe there is potential for upside in our growing city. I like to look for properties with 3 or 4 units - you can often get more rental income and spread your vacancy risk across more tenants.

I also look out of state for investments and work with some good people that bring potential deals that I arrange for myself, friends and family. If you're used to San Diego prices, you'll be amazed at what you can get in places that don't come with a beach.  Out of state investments can be a great way to pay for the San Diego lifestyle.

All the best!

I frequently see properties with non-conforming aka not permitted additions.  Specifically, I'm looking at a multifamily property which had a garage, now converted to a studio.  It has all the necessaries - kitchen, bathroom, windows, exit door - but what are the pitfalls of renting out a non-permitted structure?

Any success or nightmare stories?

This is my first time encountering this issue as a potential landlord.

Shopping for mortgages for 2-4 unit multi-family properties and considering to make it a primary residence. In my own research I've found that FHA mortgages may be available, and that's potentially attractive. My experience has been a little different, with some lenders being less than helpful and insisting that 20% is required - even before looking at my financial situation (I should be a relatively low risk borrower). In your experience, what are the right questions to ask lenders when shopping for multi-family units? Or what financing programs might be available to allow for a less than 20% down payment? Thx!