All Forum Posts by: Nicole Holcomb

Shop around for other lenders, try your local credit unions, I have had great luck with my local credit union. Do you and your parents hold accounts at the same bank, have you talked with the loan officer there? You are not tied to one lender and if they can't get you the loan your are looking for check with other lenders. I am currently working with a client that got 3 no's before they found a lender that would work with them. 

Best of luck to. you!

Awesome! Thank you for including pictures, I love seeing the transformation. The dark vanity in the bathroom looks great! So what is next for you, are you going to go for flip number 4 or does the pandemic make you want to take a break?

Way to go getting that property to cash flow! So what is next for you?

I think for your current investing goals a property without a pool would be a better fit. If you were looking to buy now and rent the entire property out I would say go for the pool. Rentals with pools are in extra high demand currently due to COVID and everyone staying home. Like you said, you are going to be living there and most likely renting to other young professionals. Things like pools, spas and elaborate landscaping are additional monthly costs eating away at your cash flow.

According to City of San Diego website, "Both Companion and Junior Units can be integrated into existing single-family or multi-family properties and can be designed in a variety of ways, including converting a portion of an existing house, adding to the existing house, converting an existing garage or constructing a new detached structure."

From some basic research building a turn key ADU from the ground up or adding a second story to an existing building are your most expensive options. This type of ADU construction runs about $300/sq ft in San Diego. Utilizing other options such as converting a portion of an existing house or an existing garage will be more cost affective. Don't quote me on this but when I was working with the city I was advised that an ADU of 500 sq ft or less has considerably less permitting fees as "school fees" are not assessed. I was able to do it for less than $100/sq ft by doing a lot of the work myself and buying a property that had a huge unfinished attic.

Hi Karim welcome!

I like the University City area for buy and hold investing. The student population of UCSD, proximity to hospitals and great schools in the area make renting out the properties straightforward if you are not going to occupy the property. The condos in 92121 and 92122 have been steadily climbing in value from about $390,000 in 2015 to $550,000 in 2020. The 92121 market is competitive with low inventory currently. 92122 has considerably more options but is also a bit farther from your target area. Watch out for high HOA fees and low owner occupancy rates that can make it hard to get financing.

If you are looking for an off-market deal maybe start with absentee owners that have owned for 3+ years. I know it is common for the parents of university students to buy condos for the duration of their kids university education. 

Best of luck to you!

I think a multi-prong approach works best for finding wholesale deals. The most important thing is to take action right away and be consistent with your marketing message and frequency.

Website and Online Marketing

Direct Mail

Driving for Dollars

Pounding the Pavement (door knocking, yellow letters, call me post-its)

Check Public Records (Tax, Probate, Bankruptcy, Divorce)

Craigslist

Network with REI, agents, brokers, inspectors

Hi Abhi, Welcome!

I have been house hacking in San Diego for the last 5 years and I think it is the best way to enter into the expensive San Diego market. Renting by the room has worked well for me as San Diego has a large student population between UCSD, SDSU, USD and many junior colleges. There is always demand for room rentals and San Diego has great opportunities in the multifamily 2-4 unit market. For my house hacks I choose 4br SFRs in north coastal San Diego (92024) and I always made sure to purchase properties with a separate entrance for at least 1 of my tenants. Having a separate entrance and making a portion of the house into a mini studio allowed me to charge more and kept my tenants happy.

There are FHA loans available for owner occupied SFR and multifamily properties with as low at 3.5% down making purchasing in the expensive San Diego market possible if you have the W2 income to qualify.

California also recently eased restrictions on accessory dwelling units (ADUs) and junior ADUs. Each SFR can now have 1 ADU and 1 JADU, it is pretty much a house hackers dream come true. I have a 1,000sq ft 2br ADU and am considering converting my garage into a JADU to up my monthly cashflow.

Vacation rentals are extremely successful for my clients in the beach neighborhoods. Beach neighborhoods may not be in your budget for a first purchase but the neighborhoods surrounding the convention center can also be a great opportunity for AirBNB and can be more affordable. 

92105 and 92115 are zips in a rapidly up and coming area with affordable multifamily properties. The San Diego market is dynamic, exciting and always changing, I love it and hope you will too. 

Kyle West did you check with the lender to confirm 20% down is all that is required for non-owner occupied? In my experience 25% is the required minimum down payment for an investment property. 5% probably isn't going to make or break the deal, so on to your question. 

I think if you can leverage a low down payment FHA loan and keep as much cash free to use on other deals you will be in a better position as a REI. In addition it is recommended that when you purchase a multifamily property you purchase a property without existing long term leases. It is almost always better to buy a property, clean it up and install your own tenants at current market rents. Taking on someone else's tenants is often challenging and not recommended for a beginner investor. Require that the seller get the tenants out before you take ownership of the property and you will be good to house hack and maximize your monthly cashflow.

Best of luck to you! Be sure to update on which route you choose.

Wow, way to go, what an awesome deal! Update us when you rent it out and for how much.