All Forum Posts by: Michael Daley

Yes, I mixed up the terms. He is the Trustee of a Family Trust. He has authority to sell the property. He has another brother that is part of the Trust and he is okay with what my dad decides; he isn't involved at all but my dad wants to be fair in the situation and it would be fair market value for the property and do everything above board.

My wife is a realtor, so we have the benefit of her selling it. I know nothing is easy and there will be challenges along the way but I want to take this step and learn in the process. We have a rental but haven't don't a flip before. 

It is in an up and coming area so my thought is that if it doesn't have the activity that we are looking for while trying to sell it, we would purchase it ourselves buying it from my dad/the Trust and then renting it out.
 

Since the house is owned free and clear and has just been sitting there for 2 years since my uncle's death, my thought was that we would decide on a price let's say $625,000, I would pay for everything else and sell it. He would get the price even if I have to take a loss from the money that was put in. This way I would save money in holding cost of getting a loan to buy it first then renovate it. Is there a way to structure it this way? Any recommendations who I should contact to discuss?

My uncle passed away and left his house to the family trust where my dad is the executer. My dad wants to sell the house to an investor because he wants it off of his plate. I want to be that investor and flip it. 

I'd like to agree with him on a price and pay for the rehab and all of the costs and then sell it for him where he would take the agreed upon price and I would take the profit. 

I want to avoid holding costs with him holding onto it while we renovate, but how to I make this as clean as possible?

He wants to be as hands off as possible including any liability during renovation, etc. 

An investor uncle said he could deed the house to me and include a promissory note that he would be paid by a specific date (4 months). My back up plan if it doesn't sell is to hang onto it and rent it out, but I don't think it should have a problem selling.

What is the best way to handle this? Any advice is appreciated.

Thank you, Dan.  I appreciate your advice. I just got the deal sent over to me yesterday, before I posted, so I haven't run the numbers on it, and knew that it would be a stretch.

I am still gathering info on the deal, and haven't done many projections for STR. It's in South Park, on a good street. One the units is updated with solar. The other is in good condition but needs updating. I haven't seen them yet. I am estimating at least $50,000 between furnishing it and updating.

How does this look:

$1.3 million with 20% down DSCR loan buy-down the rate from 9% to 8% 30 year = $9,332 (principal/interest/tax).

Utilities - $750

Income - Was thinking $250 per day but let's say $225 per day for each unit (30 days) just looked at AirBNB and AirDNA in area = $13,500 (.20 vacancy) = $10,800.

I would manage it, but still need to think of cleaning fees. It would be new furniture and updated appliances, but still need to think of capital expenses.

Basic Supplies (tp/shampoo/paper towels) - $200 per month

Cleaning - $250?

Maintenance/platform fees/cap ex/rental insurance - $2,000

Income - $10,800

Expenses - $12,532

Is this somewhat accurate? Where can I look to get a better understanding on how to underwrite it?

In this market I'm not looking to really cash flow, but want to at least break even until I can refi with better rates and value add.

Where/what would you suggest to look at in San Diego right now?

This is why I'm thinking more about taking the STR route until I can refi with a better interest rate. 2 units (2/1) in a good area at $1.3 with some ability to update and has a garage or ADU capability would work if we can get $5000 per month for each unit.

We are fortunate to be getting 20% gifted to us. Even with 20% down I'm having a tough time getting it to pencil out with current inventory and rates in these areas.

Thank you, AJ. The Bayfront project and University make West Chula Vista interesting. I know it will have value in the near future, just wasn't sure how well STR and MTR is doing. You are having success?

I actually didn't realize JADU rental had to be on-premise. I thought it only was required for STR. That will impact how we purchase our next property.

We bought a house in the SDSU area last year with an attached JADU. We are mid-term leasing the attached studio to travel nurses. 

We are looking to purchase our next property: 2-4 units, $1 - $1.4 mid-term/house hack with 20% down. Prefer light renovations/updates, and ability to force equity with opportunity to add ADU(s).

The MTR market definitely seems to have gotten more competitive in San Diego over the last year. We are looking at mostly central San Diego (Normal Heights, University Heights, Hillcrest, Talmadge, SDSU). Open to La Mesa and West Chula Vista, although I have concerns that they will be tougher to appeal to MTR. We are open to STR and just applied for a license on our current place.

Looking off-market now because on-market is so slim. I know there are a few people on here that do MTR in San Diego, in different areas. Just trying to make a decision on what might work best right now for our next move on buy and hold. Any feedback/insight would be appreciated.

Hi there, my wife and I bought a SFR with an ADU on an FHA loan. We plan on living in the house while and renting the ADU. It was recorded as non-owner occupied instead of owner occupied. What do I need to do to change it? I am also interested in shifting title to our LLC, but not sure if that will impact our FHA loan. Any advice us appreciated.