All Forum Posts by: Maxwell Ventura

@Lee Ratner

You've received a ton of great advice so far.

In a nutshell:

• I'd recommend staying local for your first deal.
• It's okay to diversify your RE portfolio, but consider taking advantage of each area's strengths. SD's is obviously appreciation.The beautiful thing about appreciation is the market is going to do regardless of your financing. Your CF will be dependent on your financing. By coming in w/ low money down in a high appreciating market the return on your investment will be very good even if the market even continues to appreciate between 5-10% a year here. Of course, this is only 1 portion of your turn. 
• Consider leveraging debt when you can (Coming in w/ little $$ down on an owner occupied residence).
• Get w/ an expert who is familiar with zoning. Aside from renovations and strategic fix ups, you'll be able to extract value from leveraging non-optimized opportunities on the lot. Some cities are better to work in than other for this, SD City being the best IMO.

@Glen Gallo

Supply & Demand tells the story. Although we're up from .7 MSI (months supply of inventory) to 1.0 as of the most recent data, we're still in a predominantly sellers market. Things have softened a bit over the last 6 weeks. Slightly longer market times, less offers on property, and slightly more inventory. 

To address your comments above, SD's economy is bringing in tens of thousands of tech & life science careers over the next decade. It's no wonder we've had a surge of these industries coming to SD over the past 14 months from the Bay area & the rest of the Pacific northwest, Boston, NY, and even Texas. 

Two thirds of people coming to SD have a bachelors degree or higher. We are continuing to become younger, richer, and more educated. Now that our economy is really making leaps and bounds you can easily make an argument it's the most attractive place to live in the US, considering everything else SD has to offer. I believe we are San Francisco 2.0. The demand is through the roof, and as long as the supply stays low (which it is forecasted to remain so relative to our population for the next decade) we should stay in a similar market moving forward. 

I don't except to continue to have appreciation gains as we've seen over the last year. It's simply not sustainable. However, we're still nowhere near some of the most expensive city's in the US and I would expect the top 1% to continue to flock here. 

Hope this helps.

@Jesse Whitacre

Over here in SD things are slowing down just a bit, but we're still in a majority sellers market. Supply & Demand usually tells the story. We're at 1.0 months supply of inventory, the rates are still low and move are still flocking to SD that are younger, richer, and more educated. 2/3rds of everyone coming here has a bachelors degree or higher now. 

There is a ton of tech & life sciences that are making their way here because of the tens of thousands of jobs in these sectors we're creating over the next decade.

@Brian R. People house hack here all the time. Most caps you'll see in SD range between 3 - 4.5% depending on a multitude of factors, location being a big one. 

Initial cashflow with low money down will usually result in being negative in the early years. There are always exceptions. Major gains are made via compounding appreciation. Of course, you have your other benefits of RE investing (Tax savings/depreciation & principle pay down).

Hope this helps

BP Fam,

I'm looking to be connected with anyone that owns a STR (short term rental) in or around 92109, San Diego. This includes Pacific Beach, Mission Beach, Crown Point, or Bird Rock

Thank you!

@Amy Hatcher

If you don't have the 20-25% capital for an investment property out here maybe try partnering up with 1 or more people OR go owner occupied w/ little $$ down. Plan to refi out in a year or two and keep accumulating properties while paying down debt and taking advantage of appreciation & additional tax savings

@Namal Burman

I have clients that recently did something similar. We sold their townhouse in Otay Ranch (newer construction) and moved them into a slightly larger, but older DET home further NW (still in Chula Vista). They didn't like feeling right on top of their neighbors in Otay Ranch. They also had mello roos previously but now they dont. The home they purchased with me had some deferred maintenance and they are going through a complete remodel right now. Even w/ the deferred maintenance, it was a very competitive situation where we came out on top.

Regarding the market, it's hard to make a case we're going to see a softening with the currently supply & demand. Rates are supposed to go up towards the end of the year which I believe will cause a little bit of a slowdown from this very fast and competitive paced market. Now, on a 1M home, if the rates goes up a full 1% point it equates to about $100k of purchase value. So, even if we see a slight dip temporarily in purchase price it could be a wash anyway, all the meanwhile you could be taking advantage of some of the other benefits of owning RE. 

It's generally accepted you should purchase RE when you're able to afford to do so. There are too many benefits to reap such as principal paydown, tax savings, and appreciation on an OO home. Time costs money along w/ a deflating American $$

An increasing rental market will follow an appreciating housing market. I'd expect rents to continue to rise in SD steadily county. 

@Patrick McNerney

Props to you for pushing through and having the foresight. I know it can be tough sometimes paying hand over fist for a small unit mix. People generally become wealthy through equity not income. Last month was 28% YOY appreciation here in SD County. 

@Rodarius Lewis

Highly recommend taking advantage of your VA loan in a high appreciating market like San Diego, especially w/ the somewhat recent changes of removing the cap. As the above mentioned, you can also look at 2-4 unit properties to house hack and the rents can be used to help boost your preapproval amount.

Live in the unit for a year and refi out to a different loan product to free up your entitlements to be able to use the VA loan again.

You can still be plenty competitive against other loan products (conventional / FHA). I've helped a handful of VA clients so far this year.

Thank you for your service.