All Forum Posts by: Maxwell Ventura

@Drew Chance

Amazing. How does your revenue compare to your mortgage payment on the remaining 8 years on your loan? 

Congratulations.

What's next for you? 

@Sai C.

Welcome to BP. STR/MTRs are an great play in heavy tourist cities. SD/LA/SF along the west coast all do very well. Here in SD our downtown convention center is the 5th most trafficked center in the US.

Lots of people stay for a month+ purely on business. 

The other factor is value ad opportunities on the lot. Many San Diegans are willing to accept negative cashflow initially because of the favorable laws pertaining to the ability to add/convert ADUs or add dwelling units through bonus density laws. 

There are many recent laws passed here w/i the past few years that have made it much easier to get creative to add units. We have very low inventory, running out of room to build in our metro areas, and new construction can't keep up w/ demand. 

The ability to add units in an already expensive market, also means there are bigger margins to be had. 

If you're purchasing as a primary residence you'll want to do this under your own name, rather than as an entity.

The entity doesn't live in the home. You also have the option of coming in w/ less % down if you're purchasing owner occupied / primary residence on 1-4 units. If you're purchasing a duplex/tri/quad and renting out the additional units, you can still take advantage of numerous "investor" tax benefits on the remaining units, including accelerated depreciation via a cost segregation study. 

Hope this helps

 Beers and Deals (meetup.com) at Ash Rooftop on Wednesday Feb 15th in Little Italy. I'll be there.

 Which sectors are you referring to? 

Investors acquire property in all markets. Just a matter of finding the right opportunity, and for your given situation.

Starting your RE portfolio via house hacking is a great way to get into RE investing because you're able to come in w/ little money down and can potentially use surplus units rents to help to qualify.

Hope this helps ~

You have property value at $290K? And looks like that's the ARV? I apologize if I'm reading that incorrectly.

You'll be hard pressed to find a fixer in a bad area of San Diego metro under $500K these days (and that's on the acquisition side, so ARV would be higher after renovations)

Cheers ~

@Christina V.

After doing your own research & deciding on an out of state market, you'll want to connect with a solid core 4: Deal finder (Realtor usually) / Lender / GC / Property Manager

What type of asset are you looking to acquire? The reason why I ask: If you're looking out of state for a SFR or small multifamily you'll most likely be looking at 20-25% down.

Cash flow is only one piece of your return. There are many, many other benefits of owning investment real estate. 

If cashflow is your primary objective and you're investing out of San Diego with the intention of purchasing cheaper real estate I'd highly recommend looking at acquiring more units. Possibly small apartment complexes.

You mentioned you're not looking for a fixer so it doesn't sound like you'll be forcing too much appreciation via a value add play.

Otherwise your returns will be marginal. 

Hope this helps

@Stinson McElhinney

Property value increases will be marginal at best. The first thing we typically look at when buying / selling are the best comparables in the market. 

Solar is often looked at as a "bonus"

The main thing homeowners baulk at when considering purchasing a home with solar is: Are the panels owned / leased? Is there an annual escalator in payment? Both of these "objections" can be explained via an agent who understands solar. 

re: Solar will of course offset increases from SDGE as kwh rates have risen every substantially every year since the deregulation of electricity in 2001.

If it were me (and I used to be in the solar industry years ago) I'd either:

1) look at a $0 down option, preferably a purchase-to-own finance option. Most people prefer that over a PPA/Lease, or 

2) Do nothing at all as your tenants will be paying electricity like you mentioned. 

Regarding resale value, going solar won't have much of an effect.