All Forum Posts by: Mauricio Salom

Hello @Craig T. my wife and I have talked about this a few times and we have come to the conclusion that unless your property is located near down town, costal, or a unique property where you can charge a premium then long term beats STR. I own 2 STR that are not in any of those locations and we do fine (80-90% occupancy ) but only because we self manage and handle all of the cleaning and maintenance. I ran the numbers and if I had to pay management fees, cleaning, handyman my cashflow would be gone negative even . Another factor in San Diego is the rising cost of energy this month alone my utility bill has doubled normally $500-$600 to $1000 and I cant go and ask my guest to turn off the AC when they are not home lol. Long term tenants would be responsible for their own utilities. Hope this helps.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $1,100,000
Cash invested: $220,000

Invested in a triplex with my family that we currently occupy the property has appreciated well.

What made you interested in investing in this type of deal?

It is a very unique property, multiple units all with separate yards on a large lot, very nice street, walking distance to my rental very convenient since we self manage

How did you find this deal and how did you negotiate it?

1 block away from my current rental that I was working on I noticed on open house house on one of my many trips to home depot for material.
My wife represented us on the purchase and negotiated $100k credit due to foundation issues.

How did you finance this deal?

Conventional financing from Kenny Simpson

How did you add value to the deal?

New Foundation
New Roof

What was the outcome?

The property has appreciated well

Lessons learned? Challenges?

Don't be afraid to ask for large sums when negotiating

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Realtor: Iris Salom
Financing : Kenny Simpson

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $505,000
Cash invested: $150,000

After holding our first property for 2 years to avoid paying taxes we sold and took a portion of the proceeds and purchase a SFR with a large detached garage that was already converted to a 2 bed 1 bath. We renovated te front and legally permitted the garage and have both rented out.

What made you interested in investing in this type of deal?

taking an SFR and being able to add a unit good neighborhood
Large Marina development less than 1 mile away

How did you find this deal and how did you negotiate it?

My realtor helped a friend buy a property a few doors down on the same street

How did you finance this deal?

conventional financing

How did you add value to the deal?

renovated front unit and pulled permits and converted detached garage in 2bed 1 bath unit

What was the outcome?

great long term hold that cashflows well

Lessons learned? Challenges?

ADUs do not appraise as well as you might think, any time you have have to deal with the city be ready for a terrible experience

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I have a great realtor that happens to be my wife lol Iris Salom
For financing I went with a great mortgage broker that works with a lot of local Real estate investors Kenny Simpson who is also very active on bigger pockets

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $505,000
Cash invested: $150,000

After holding our first property for 2 years to avoid paying taxes we sold and took a portion of the proceeds and purchase a SFR with a large detached garage that was already converted to a 2 bed 1 bath. We renovated the front unit and rented it out right away. We got plans and permits to get the garage legally converted to an ADU. the whole permitting process took a year but thankfully after a lot of fighting with city inspectors our garage finally passed all inspections and was ready to be rented out.

What made you interested in investing in this type of deal?

taking an SFR and being able to add a unit good neighborhood
Large Marina development less than 1 mile away

How did you find this deal and how did you negotiate it?

My realtor helped a friend buy a property a few doors down on the same street

How did you finance this deal?

conventional financing

How did you add value to the deal?

renovated front unit and pulled permits and converted detached garage in 2bed 1 bath unit

What was the outcome?

great long term hold that cashflows well

Lessons learned? Challenges?

ADUs do not appraise as well as you might think, any time you have have to deal with the city be ready for a terrible experience

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I have a great realtor that happens to be my wife lol Iris Salom
For financing I went with a great mortgage broker that works with a lot of local Real estate investors Kenny Simpson who is also very active on bigger pockets

I have house hacked on the west side of Chula Vista and love it. I have found that in that area you can find more SFR's that have already been set up to house hack and ready to be rented on day 1 or take very little work to divide also granny flats / ADUS are also very common in Chula Vista. I am also eager to see what the J st Marina development project does for property values. There are always opportunities for house hacking. With interest rates up buyers have slowed lowering home prices and with more people asking is now a good time to buy it lowers your competition and right now you can avoid the bidding wars and likely even get the seller to pay for closing costs or buy down your interest rate.

Hey @Taylor Gardner I agree with @Dan Garrigus house hacking is a great way to get started. That is how I got started I bough an SFR and rented out the rooms while using the money I was saving to reinvest into the property then sold 2 years later took my tax free proceeds and bought 2 units. The important part is to build a team (realtor, Loan officer, etc) and come up with a game plan even if it will take a few months or a year to execute might happen a-lot sooner than you think. Good luck

Hello I am in need of a General Contractor and would appreciate any referrals. I have a 900 sqft detached garage that was already converted into living space when I bought the property and now I want to permit the garage as an ADU. I already have all the plans and permits from the city but it seems like every contractor in San Diego is overwhelmed with work. please let me know if you have any contractors that you have worked with in the San Diego/ Chula Vista area. Thanks in advance

I was actually leaning towards dividing it up by people per unit. Thanks for the input

I was thinking I would leave them in my name 

I have a single family home with a garage conversion. Both are 2bed 1 bath. Iam moving out and I am going to rent both units. I have not lived in the property while the other unit was occupied so I dont have any numbers to find the average so I'm looking for a good/fair way to split the utilities between both tenants. Anyone with a similar property please let me know how you are splitting things thanks.