All Forum Posts by: Douglas Larson

Shaun,
San Diego is a big, fun market. I currently live in in Utah and invest here but San Diego - North County is my home. I flipped 3 REO homes in SD North County in 2011 and 2012. I brought my family with me to spend time at the beach and work on the projects with me. My projects were in Vista, Encinitas and Carlsbad. We averaged a net of about 72K each on homes that sold for 350K to 500K. Wholesaling is time consuming but there are some great deals to be had. I still watch the market there and inventory is dropping, but prices are expected to rise by about 15% in the next year. As long as there is a nice layer of potential profit in the deal, flipping and wholesaling will work. If a home has an ARV (after repair value) of 300k, you have to have it under contract for 160K to 190K to make it work, depending on repairs and holding costs.

An excellent resource in San Diego is Redfin.com. They have the best database for active, pending and sold listings so you can easily see property values. I also sold all 3 of my homes using Redfin and they saved me thousands in commissions.

If you've listened to all the Bigger Pockets podcasts you've heard from a couple wholesalers that shared some great techniques for finding deals. Have fun!

- Make your own luck!

The podcasts have been a great addition to the BP brand. It has been fascinating to hear true stories and experiences from wholesalers, landlords, flippers etc. Nothing gets the juices of inspiration flowing better than real success stories. Thanks Brandon and Josh!

Unless your loan has a "pre-payment penalty" you should be able to re-fi now. I don't know the rules of getting another FHA loan so soon. Any experienced lender can tell you in a heartbeat. Great plan if you can!

Tony, My third real estate deal was a functional tri-plex on Maui. I did not live "rent free" but the other two rental spaces made the overpriced house work with my budget. (Every house on Maui was overpriced.) You have a great plan. Keep in mind that older properties will generally have more problems and if your handyman skills and cash reserves are limited, a leaky roof or broken furnace can kill your budget. I stick with rentals no older than 1980. Also remember that a good home inspector during the due-diligence phase is worth his weight in gold.

If your rental property is a condo, ask for an HO-6 policy. If its a SFR then you should be able to find standard fire owners policy. Also, notify your tenants that you strongly recommend they purchase a renter's policy or their stuff will not be covered. They don't have to do it but it's good CYA to have your recommendation on the rental contract.

Yep, I've run into the same problem. I look for homes that need 45-60 days for total rehab and then list for sale. By the end of the sale process we've reached the 90 days. Quick flips are tough these days with FHA buyers dominating the market.