All Forum Posts by: Maxwell Ventura

@Nick Lawrence

I have a team in which you should be able to finance more of the ADU project if you're interested. As Kenneth said, ADU appraising is a bit of a moving target right now, but the CF should be there initially. Having separate access (out of sight/out of mind) is great. Keep in mind you're also adding SQ ft to your property and I believe appraised values should start increasing. Our inventory crisis isn't going to get any better anytime soon. Also keep in mind the gains you'll make on Appreciation out here will compound significantly faster than a 300k property.

@Yonna Collier

Recommend investing locally first if you can. If your goal is to house hack and/or purchase something owner occupied I'd recommend taking advantage of an asset that is going to appreciate well overtime. Especially w/ your ability to leverage debt and come in w/ low money down w/ an owner occupied loan.

One train of thought is to diversify your RE portfolio just like anything else. So ask yourself, where is my money best used in which situations? Remember there are 4 portions of your return. CF, APR, tax savings, principal paydown. The SD market is prime for the long term, low money down owner occupied (at least initially) play. When you see the compounding gains you'll make on APR over time on a spreadsheet it tends to connect the dots.

In regards to CF, SD market has great CF over time but INITIAL CF is poor compared to other markets. However, rents are increasing between 3-4% a year here and the rental market is just as competitive right now as the purchase market. An increasing rental market will always follow an appreciating housing market. So, CF is actually quite good here when you really dig in.

Hope this helps,

@Daniel Moreno

The market is moving very quickly my friend. It wasn't long ago (maybe less than a year) when I was telling people a duplex w/ a decent unit mix (Other than two 1/1s) started around 600K. Now, it's more like $700k. There is definitely a price of waiting.

Not only that, IDK if you've been submitting offers yet w/ your realtor but that is an art in itself to just get your offer accepted. There is a lot that goes into submitting a strong offer other than just price. Not only that, relationships matter.

SD has recently been named the most competitive market in the country. 

My advise, make your goals clear to your realtor, but you also may have to double check your own expectations.

Hope this helps

@Shankar Sridhar

Welcome to BP and congrats on starting your portfolio and journey into RE. If you need help analyzing a property feel free to reach out. I have a handful of spreadsheets I use. 

@Andrew Camarda

We have REI meetups at our San Diego downtown office approximately once a quarter. Happy to connect

@Zachary Dorff

Recommend investing locally first if you can. If your goal is to house hack and/or purchase something owner occupied I'd recommend taking advantage of an asset that is going to appreciate well overtime. Especially w/ your ability to leverage debt and come in w/ low money down w/ an owner occupied loan. 

One train of thought is to diversify your RE portfolio just like anything else. So ask yourself, where is my money best used in which situations? Remember there are 4 portions of your return. CF, APR, tax savings, principal paydown. The SD market is prime for the long term, low money down owner occupied (at least initially) play. When you see the compounding gains you'll make on APR over time on a spreadsheet it tends to connect the dots.

In regards to CF, SD market has great CF over time but INITIAL CF is poor compared to other markets. However, rents are increasing between 3-4% a year here and the rental market is just as competitive right now as the purchase market. An increasing rental market will always follow an appreciating housing market. So, CF is actually quite good here when you really dig in.

Hope this helps,

We have a few spots left. If you're interested here is the sign up

https://www.eventbrite.com/e/r...

@Shankar Sridhar

Understood. Didn't realize you were adding in maintenance costs. I'm sure you realize expenses will be considerably less on a condo vs DET / small multifamily. Later on after moving out, you can avoid the extra expense of a property manager as most fixes can be performed by 1 phone call to a good handyman. 

@Shankar Sridhar

Are you comparing an "apples to apples" unit? If you're subtracting rents (even just 1 room) from your mortgage payment, I wouldn't expect it to still be $1000 higher (gross payment) than your rent payment. 

With that being said, when you factor in principal pay down, appreciation in SD, and tax savings your net mortgage payment should be considerably lower. Your rent payment will also continue to increase over time. 

@Emmanuel Mendez

Call me biased but I'd recommend really considering investing locally for your first deal. San Diego's appreciating market will allow you to jump to your next owner occupied home faster than you think. The increasing rental market has and will continue to follow our appreciating housing market. 

Wait to invest OOS until after you're already reaping the many benefits of an owner occupied home. Little money out of pocket to get started and you're not throwing money away to rent. Principal pay down, appreciation (compounding), & tax savings will add quickly to your net worth. You should also see a great return on your money coming in w/ a little down payment. 

Lastly, after 2 years you'll have up to $250K ($500K married) capital gains exclusion if you choose to sell for any reason.