All Forum Posts by: Maxwell Ventura

@Michael Sabosky

Before you cross the finish line you have to cross the starting line. I see Study and Action as two equal parts Yin/Yang. You have to continually be doing both. Paralysis by Analysis = Death. 

@Carl Morgan

What's the latest with this? Do you still need a referral? Happy to help

@James Peck

I'd recommend starting out locally but if you're dead set on initial cashflow as your main objective I can steer you in a different direction. I have a client that started investing in Ohio recently and is having success. He took time building a team out there. Happy to help.

@David Lyons

I have a great structural engineer for you, as well as the other vendors. Feel free to PM and let me know whatever you still need. 

Thanks ~

@Jamie Jeffredo Going off of the information you provided I have a very good idea where you're located as there are only a handful of RM3-7 lots in SD City. The upside for this area w/i the next 5 years is very strong. 

In getting back to your question on what you should do, I think a major factor is what you see happening w/ your current and future employment. You have a great lot you're sitting on right now. 

BUT, the other major point is this: Currently, as I understand it... You will not be able to get financing through Fannie Mae / Freddie Mac (which includes a cash out refi) on a multi-zoned lot if you add even 1 ADU. Something to seriously think about. Luckily, w/ an RM3-7 (1 unit every 1K sq ft) you can add more primarily dwelling units instead of going the bonus ADU route. This will avoid the financing issue I just mentioned. It will just be more costly w/ fees.

@Kunal Bhatia

It really boils down to your level of comfort. Assuming market conditions continue at an upward trajectory (and not necessarily aggressive) I would argue the more you leverage (the lower down payment) the higher your ROI will be. --> Mostly because of appreciation in the SD Market.

Your condo will appreciate the same regardless of your financing, meaning a significantly higher ROI on 5-10% down versus 25%. Will you have a higher mortgage payment + PMI? yes. But your return on your initial investment will be much greater and you'll have leftover capital for strategic fix ups or to get to your next deal faster.

Hope this helps.  

@Christopher J. Montoya

I have a great contractor w/ 30 years experience here in SD that I know will be able to help you. Feel free to PM

@Shaun Weekes

I should have a few great contacts for you depending on what you're looking for. Feel free to DM

@Emma C.

Congratulations for starting to think big picture! As the others mentioned, you're looking at 3.5% via FHA or 5% conventional w/ owner occupied. There are also down payment assistance programs which may or may not make sense for you.

While a SFR or duplex will 9/10 be the better investment because of greater appreciation & value add opportunities, you could even look at a condo and rent out the room(s) to help w/ your mortgage payment.

Either way, you should have a significant amount of options w/ $45K to go towards a down payment + closing costs. 

Hope this helps!

@Ryan Lively

Welcome to SD & BP. We host a REI meet up once a quarter at our downtown office. Along w/ socializing and a detailed market update, I usually have a team that comes by to talk about ADUs. Everything from financing, designing, permitting, and building.

We always get great feedback. We try to make it valuable for everyone rather than just a social hangout. Sometimes there's nothing wrong with that either!