All Forum Posts by: Michael Conway

We are having success with out AirBnB in North Park. Im seeing an average 25% higher NOI than market rent for traditional lease. Location and who your trying to attract are key... If you want vacationers, the beach or hip areas with nightlife is a must.

That being said, San Diego has a huge demand for corporate short term rentals, traveling nurses, military etc.  These folks typically are looking more for amenities that fit there business than a vacationer, thus less appealing locations may be ok.

Find whats right for you and tailor your rental towards that market, riches in the niches!

There are pockets of Logan Heights and Grant Hill I could see coming up...  east of 25th is still pretty scary.  As for city heights, I agree that I don't see this area revitalizing in the next 15-20 years.  Gentrification can only push city heights towards lemon grove, city heights folks are already priced out of all the other neighborhoods that surround the area (north park, normal heights, kensington/talmdage, rolando/el cerrito, la mesa) . They're stuck...

I would bet on Multi-family along the path of the new trolley system, specifically bay park area.  The city wants to densify zoning along Morena boulevard, and with direct access to down via trolley, and an up and coming food/restaurant scene developing in the area, this could be a strong in next 5 years.

@Sarah D. - So far so good!  Taking a little time to develop the reviews we need to increase our occupancy, but overall its been easier than we thought with the right systems in place, and the cashflow is great!  Gonna ride this wave until the city tries to take it away...

Path of progress is always an interesting perspective, whether from a general 30,000 ft view of a county, city or neighborhood.  In my neighborhood or North Park, I bought it was I felt was the path of progress, the west end of El Cajon Boulevard.  However from a big picture, north park might not really be the path of progress... How do you define path of progress, and where is it headed??

Thanks @Chris Mason.  Would the entire existing mortgage debt typically be used against my personal DIR, or would this be a percentage based on the shared mortgage between my wife and I?

My wife and I recently purchased a duplex "house-hack" together. She had a short sale a few years back so we financed this through FHA. I am looking into another deal with a partner on a SFR. My gross yearly income is around 100K, my wife's is 90K, our mortgage is $4700 and we have a credit card with around a $150 monthly payment, no other debt.

My question is how will the lendor calculate MY debt-to-income ratio if only my name is on the loan, and only my income is included.  Also, we have only had the duplex for 3 months, rent coming is currently is $1650/month, can this be included in DIR?  Any info from lending professionals would be helpful.

Thanks!

I would love to chat more with people who are successfully running clean and sober houses for recovering addicts.  I'm looking into entering this market and am struggling with the "numbers"... vacancy rates, cost of doing business, type of business entity, etc...

Michael

My wife and I recently bought a "house-hack" duplex in North Park. I agree with looking for value add opportunities, outside the box thinking. We purchased a 700K+ property for 35K out of pocket on an FHA loan, and got 10K back during closing (net 25K out of pocket...) The duplex we bought is in a prime location, and we knew the second unit would be perfect as a short term rental (STR). San Diego is a tough cashflow market when you have limited capital. We knew we had to do whatever it takes to MAKE this property CASHFLOW, and our analysis showed that was possible, so that we can continue to buy assets for appreciation. We don't plan on selling this properties, so buying at the top of the market cycle doesn't scare us. Don't be stupid, but don't be scared to take calculated risks. We knew this deal would work for our plan, and it's working...

We fixed the place up, and pending the market holding up over the next 6 months... we plan to refinance this property into a conventional loan. This will increase our cash flow to around $200/door and allow us to purchase another 2-4 unit FHA with 30-45K down by end of year. That's about 1.5M in RE, for around 60K out of pocket... leverage. I love the idea of "riding the wave"... or buying a property at least every year such that market changes average over the life of your portfolio. That's our plan, but It all comes down to YOUR goals, go get em!

We are looking into purchasing an SFR in Phoenix to run as a clean and sober house. I'm wondering if anyone has experience running this type of business, and what type of business entity would best fit this model. There would be 4 investors involved with this business.

Thanks!

Michael

I recently purchased a duplex.  The existing tenant lease states that they are responsible for pro-rated water costs, however on the estoppel certificate it was checked that the landlord is required to pay water and disposal...  The tenant is saying that they had never paid water prior to us taking over, which contradicts their lease terms.

This was obviously a miss on my end, but do I have any legal recourse?  The lease is attached to the estoppel which shows a clear contradiction.  Additionally, item (2) in the estoppel states that the existing lease is maintained in full force, and the tenant write "N/A" to any modification, exceptions, etc...

Its my understanding I'm required to uphold the lease terms.

Any advise is helpful!

Thanks,

Michael

I'm in the market for a 4-unit property in San Diego, CA.  I am starting the plan a direct mail campaign, do some driving for dollars, etc.  I was wondering if anyone has tips/tricks to help with making this successful.  Thanks!