All Forum Posts by: Lee Ripma

Hi @Matt Snow, 

I'm in a similar boat as you, trying to save up and figure out the best place to invest. I'm in San Diego but the rest of my family is in the Bay where I grew up, Santa Cruz, Berkley, and Palo Alto. I've looked into RE in Santa Cruz and Capitola (high demand) and the outlying but awesome areas of Felton, Ben Lomond, and Salinas (not quite as awesome) as I think demand will increase there as well. What do you think of Boney Doon for RE? I'm looking forward to hearing about where you pick and following your successes! 

Lee

@Ryan R. Thanks for sharing your experience! A lot of folks here are certainly interested in how things go for you on this, myself included! Best of luck to you on your project! 

@David Dawodu

I currently live in San Diego and am looking for my first property. Prices are very high in relation to rents so I've thought of house hacking a multi-family and managing the other unit(s) as vacation rentals. I also have a few value add ideas related to adding small units that would be perfect for vacation rentals. If you ever want input, want someone to do a drive by, or go look at a unit with realtor I'd be willing and interested in helping you out! There are a few units in desirable areas on the MLS in San Diego that I've been watching for a while and they might provide an interesting opportunity for lower offers. PM me if I can help!

@Sarah Miller I think those might be a bit cheaper but they are in Virginia (added shipping cost?) and don't have the aesthetic that will appeal to the demographic I'm targeting, but kind of you to keep an eye out! I'm looking into how much it would cost to site build several units with a similar design, it might be cheaper especially in bulk. @John Arendsen I know the modulars save time and not necessarily money but in bulk the cost savings might trump the time savings! I would love to have a tear down lot zoned R-3 or R-4 to try this out on, if anyone has this I've got some ideas! 

@Colin McDonaldI've often dreamed about how I could do something similar to what you're proposing and use the commission to reduce my cost! I'm not sure if you can do it unless you've got a realtor friend who can help you out, and I do know that buyers agents will often reduce their commission to make a deal work out through. PS. Typical commission in San Diego is 2.5%. 

@Joe W.What neighborhood is your 4plex in LA? I would love to buy something like that! Thanks! 

I have a similar idea of adding small modular units to existing parcels in San Diego which contain at least one single or multi-family unit and have the proper zoning. I think there is a real push towards smaller living, mainly because millennials (like me) want to live in the City center and can't afford million dollar homes. This is evidenced by the "tiny house" craze, but the problem with tiny houses (e.g., tumbleweed) is that you can't legally add them to parcels as they are considered RVs (code violation and a plumbing logistics). Therefore, my idea is to follow the zoning laws in San Diego and install something like a 350 sq. kit house with a foundation and permits. I've done a lot of calculations regarding these additions and I think it probably would be less expensive to stick build them, although I only have rough estimates for adding the modular units with foundations and no costs for stick building them. I am interested in the units having a sleek modern design and so like the kit haus k6 with a kitchen and bathroom. 

http://kithaus.com/modules/k5-k6-series/

My estimate is around 87k per unit to add 5 of these units to a lot I was looking at that already contained two single family homes. The great thing about the deal I was analyzing is that the area was zoned only for single dwelling units and these would qualify. I think the idea of smaller living in the City center is really catching on. I know a 350 sq foot house sounds way too small to many of Bigger Pockets, but there is a ton of demand! 

If anyone in San Diego has a unit that could possibly accommodate one these and/or is interested in seeing/critiquing my calculations I'd love to share. Great topic! 

@Fred Sams

@Justin R.

@John Arendsen

@Nick Coonis

@Drew Cobb

I've been watching that one to see if the price drops! If you're going to spend any money I would spend it on hardwood floor installation. You're prospective buyers are single millennials like me, we hate carpet. My two cents! Best of luck!

I'm interested to know where it is as well!

@Hersh M.I've got some very specific ideas about places in North Park, let's connect and I can fill you in a bit more if you're interested!