All Forum Posts by: Kevin G.

Hello everyone!

I have been wanting to start my own AirBnB for a long time and finally feel I am ready to by the end of year. My plan is to look for a single family home but if I can find a multi family property to have more than one unit and it fits my budget I will defiantly go for that as well.The location I am looking at is San Diego and/or the surrounding area. I know San Diego may seem more saturated but the occupancy rate there is still very high. 

I am centrally located between these two cities. My plan was to try to manage most of it on my own first. Get a solid team and plan together but try to do everything else remotely first. If I can't manage remotely my next plan was to hire a PM company to handle things.

So far when doing my research it sounds like you can own a STR in San Diego in their "Tier 3" category. So far there is still 2,000 something left spots available for a STR. I am totally open to surrounding areas in San Diego County, like Escondido, Oceanside, Carlsbad, etc. My goal is to find a good neighborhood with a high occupancy rate and decent daily rate.

Thinking of going more for a 4 bedroom house to accolade more guests but it depends on if I find the right deal. I would ideally like to find a property that just needs some cosmetic work, remodel the kitchen probably and AirBnB out. Thankfully, I have some family down there that does interior design that is open to helping me design the place too which will help me save some money.

Any tips for a first time host and in this area?

Thank you! 

I'm a first time investor here and exploring many options on how I can best start out. One of the options I've explored was buying a small piece of land in the Bay Area and building a small home or ADU to rent out. I'm wondering if you're allowed to build an ADU on empty land or do you HAVE to already have a home on that property?

Thank you for any help.

 Thank you! I will be taking some trips down there soon before year end to seem some properties in person and starting getting a realistic idea. Currently you are correct - I have just been using Zillow but need to start researching other websites and contacts to get more info. There isn't a ton of multi families on Zillow (there never usually is.)

27M Married, wife’s 26, with a 1.5 year old baby. Currently renting in the Bay Area at $2750/mo. After electric, garbage, and everything else just the house rental is around $3200/mo (not including general expenses) all said and done.

I want to buy a duplex somewhere and live in one side and rent the other. Buy the property with an FHA loan (since I don't have a ton of cash, most is invested or in retirement accounts.) and then move out after the requested timeframe has lapsed that I need to live in the property.

My current lease I signed was an 18 month lease and we have still around 16 more months to go. I’m thinking with plenty of grinding and overtime I can try to save as much cash as possible and start this investing journey finally. For prices in CA I’m thinking I’m gonna need at least need $40k-$50k with a 3.5% down payment.

Me and my wife really love San Diego so house hacking may be an opportunity to get into the market, AND Be able to live there. The thing with San Diego as I realized is its very difficult to find deals especially on the multi family side, but maybe by the time i'm looking next year the market will be a little more in my favor for multi family units. I also have no problem finding a more run down property and maybe using a 203k loan instead to help renovate the property. 

Does anyone have any advice for me with this plan?

Sacramento has a great selection of multi family units so you have a good location picked out right there. I would suggest anywhere in Sac that you can find a good deal on a duplex or triplex to go for it. When using an FHA loan for house hacking I believe they will calculate up to 75% of the income you'd make for each unit. You're able to use this income towards your own to increase your buying power. Since your target is 3-6 months I would start talking to lenders now so you can be ready. This usually takes the longest as you need to find one who is familiar with FHA loans, house hacking, etc.

You could also consider using a 203k loan which is similar to the FHA loan but allows you to finance the renovations into the purchase price.

Welcome! I'm with you on the out of state investing. I have the same goals as you do! I live in the Bay Area too, and it seems to be a common theme between us all that we'd rather invest our hard earned money somewhere else. The prices here are insane. 

I've looked at the Kansas City, Missouri area and as well as the Dallas-Forth Worth, Texas area. They're worth checking out. I'm gonna be trying for multi family over SFH.

If you're keeping your expenses low, you can save a lot of that high bay area salary and it'll go a long way out of state. Thats what I'm hoping to do. Feel free to reach out or asking more questions. Would love to bounce ideas off one another. 

 Thank you for the advice and sharing your info. Yeah based on my research KCMO seems like a great market, and sounds like you have some good experience there. I guess my biggest concern is being able to handle all this remotely. While I do have my sister who lives in the area, I dont want to rely on them to handle everything. I want to be able to do this remotely while I'm still living in CA. 

Hello all,

I know first time investors post the same generic questions here all the time , and this may be another one , but I'm very interested in investing in real estate. I have been researching a lot, reading books, and really trying to educate myself. Currently im 25 and renting an apartment here in the Bay Area, CA. My market is pretty tough for cash flowing properties. My original plan was to buy a home, live in it for 2 years with my fiance, and then move and rent it out in hopes of buying something else. Next option Is to house hack with a duplex. There is very little selection in my area for duplexs so I'd have to look outside of town (1.5 hours away in the Sacramento Area) adding a long commute for me. I know if the deal is right the commute would probably be worth it.

I'm also interested in investing out of state due to my market being so high. Specifically Missouri, outside Kansas city. My sister lives in this area as well. The Rents seem very strong along with appreciation. I have enough to put 20% down on a property , and I'm willing to put in the work to find a PM, good realtor, and overall a good team. Eventually I plan to leave California but not until later down the road, and I'd like to live near my sister. Having my sister and her husband near the properties would be beneficial as well. 

Is this a wise choice for a first time REI in the Bay Area ?

Welcome aboard! I'm new as well and also live in the Bay Area, East Bay to be exact. I have the same questions and concerns you do as whether or not to invest here or in another market or even out of state. 

Let me know if you ever want to connect or bounce ideas off one another !

To answer your question as someone living in the Bay Area: I am definitely considering leaving California, and I know a lot of people who want too also. My reasons are not only due to insane taxes and HCOL , but also for political reasons that I just can't wrap my mind around anymore. One reason I am staying for now is I can make way more money here with my current job , to help with starting REI.